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.

 One 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 article does not constitute a financial advice. It's only for information purpose.



Unplash/Micheile Henderson/Free License photo


Comments

Post a Comment

Popular posts from this blog

The Clearest UAP UFO Picture ever Taken

Image
The Clearest UAP UFO Picture ever taken by:  Andrew Zabb   In Oct 2013, a massive UAP was observed along the Coast of Australia, it was over 100 meters Long, blue beam coming down of it, we can see 6 white circular bright windows in upper part. That same UAP (or UFO) was seen in France and China with recorded footage. This type of craft of unknow Origin, know was "Cigar Shaped UFO". It was suspected that the same craft caused  airport shutdown in china back in July 2010. See the enlarged pic below: The moment it arrive at the scene scanning the coast   I hope you enjoyed these images.
Read more

Reddit 2024 IPO Launch, when and how much is the share?

Image
Reddit 2024 IPO Launch by:  Andrew Zabb PUBLISHED Sat, MAR 16 2024 4 :13 PM EST The Reddit IPO with start on 21st of March 2024 at NYSE. The expected Stock price will be around $33. And there is 15 million shares to sell from the total 22 millions issues in the offering. The Ticker symbol will be " RDDT. ", yes seems there is a dot in the name. Reddit valuation reaching $6.5 Billions. Reddit had issued a warning about Redditors who may cause volatility in the stock price.    Disclaimer: this article does not constitute a financial advice. I t's only for information purpose.
Read more

A beginner's guide to the types of financial assets

Image
  A beginner's guide to  introducing the types of financial assets Written by Tao Elyaalo The investment climate can be dynamic and constantly evolving, but for those who devote sufficient time to understand the fundamentals of investment principles and the various forms of assets, it is something that makes them reap big profits in the long term. The first step is: Learn how to distinguish between the different types of investments, and what distinguishes each of them on the "risk ladder". But before we start, there are some important points you should know: It is difficult for beginners to carry out investment operations; Because there is a huge range of potential assets that they could add to their portfolio. The investment risk ladder that defines classes (types) of assets based on their relative risk ranks cash liquidity on the basis that it is the most stable investment, and alternative investments are often the most volatile. Often the resort to commodity index fun...
Read more