How to Invest in Bonds?
First of all : what is a Bond? A Bond is a Financial instrument issued to the holder. Unsplash/Mathieu Stern/Free License Types of bonds include : government bonds municipal bonds corporate bonds where a person would receive a bond in exchange of loan given to the government, the city or a Corporation. Note that Bonds can Also be in mutual funds. O ne of the most common type of bonds is mutual fund. Example: S&P 500 Fund ( index of 500 large cap U.S. companies ) Unsplash Free License Photo What is the most convenient way to invest in Bonds? -You can contact your personal bank to purchase a mutual fund bond, or you can contact an investment firm. Later, you can just sell and make a profit . There is always management fees between 0.5 % to 2 % from the total amount. Unsplash/Free License Analysis: Below is 5 years chart for S&P 500 Index, some of the advisers would suggest to keep the bond for 2 years to make profit. Google Finance Chart Disclaimer: this