Finding the Best Bonds to Invest in
Bonds have long been seen as a safer haven for investors looking for a greater degree of stability, certainty and above average returns from their investment. This is particularly true when equity markets have been experiencing greater volatility. Indeed, bonds have the advantage of being a counterbalance to the volatility and uncertainty of equities.
A Bond is essentially a loan, typically to a company, as a way for that company to invest and grow. The investor is paid interest in return for lending their capital to the company for a fixed period of time, typically between 1 and 10 years.
These Bonds cover a multitude of purposes, from commercial and residential Real Estate projects to luxury hotels and leisure complexes through to core funding for companies to improve their market share in their own field of expertise.
They work extremely well as a means of providing certainty to a company, as they know they will have this capital for projects over a fixed period. More importantly, the regular income payments provide above inflation returns for you, together with a promise of the return of your capital at the end of the term.
Bonds are now pooled or collectivised in funds, where your money is invested alongside others. A highly- experienced team of experts in their field can then assess which companies and projects are most suited to the purposes of you and other investors. In so many ways, this helps to get the right balance for each investor.
So far so good?
Yes, a well-constructed Bond investment can provide a balanced, stable and low-risk investment.
However, researching which type of Bond suits you, how they fit your attitude to risk and, perhaps most importantly, what could possibly go wrong, can be hugely time consuming, as well as confusing.
Furthermore, research behind the headlines is vitally important; understanding exactly how your money will be invested and seeing the evidence at first hand. Assessing the suitability and expertise of the team investing your money, is both time-consuming and costly. It is though, an essential way to learn which investments should form part of your portfolio.
Help is at hand though. Allow Compare the Financial Markets to be your guide.
Our bespoke Bond research system will help you find the investment and management team best suited to your needs. Start your search by completing the form below now.