Individuals and institutions can use bonds in many ways: from the most basic, such as for preserving principal or saving and maximizing income, to more advanced uses, like managing interest-rate risk and diversifying a portfolio. Bonds can also be an afterthought, especially during flight-to-quality events, when investors flock to the safest bonds they can find to weather financial storms. Bonds provide a predictable stream of coupon income and their full par value if held to maturity.
Top six ways that you can put bonds to work for you:
1. Preserving Principal
2. Saving
3. Managing Interest-Rate Risk
4. Diversification
5. Expense Matching/Immunization
6. Long-Term Planning
To know in details about each of them, Read here…
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January 8th, 2009
Tushar Mathur

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