Bonds: Fixed Income, Evolving Popularity

An investment option where an investor lends money to a government or corporate entity for a fixed period at a predetermined interest rate is known as a bond.

Traditionally, the bond market has not been very popular among retail investors. However, in recent times, sluggish equity markets and low bank interest rates have encouraged retail investors to consider corporate bonds as an alternative.

Advantages: Bonds usually offer higher interest rates compared to conventional savings instruments.

Disadvantages: They are generally unsecured, and the interest earned is taxable. Therefore, it is important to carefully assess the credibility and past performance of the company issuing the bond before investing.