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Bonds - Looking for diversification? Bonds are the best

10 Apr 2003

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Bond Funds do, however, give investors low-cost easy access to the fixed income asset class. Fund Managers and Fund Families can provide investors with a great deal of expertise. Bond Funds, though they do not have guaranteed returns or payment streams, can be found to fit all types of risk preferences and risk aversions.

Access to individual Bonds, though improving, can be difficult and expensive. Many types of Bonds require large initial investments. Bond Funds can be purchased for a few thousand rupees; furthermore, Bond Funds give investors easy diversification within the target asset class.

Bond funds also give you choices. You can choose to invest in Corporate bonds, Government Securities etc. So, which to choose? Bond Funds are probably the right choice for investors who only wish to obtain diversification. It is difficult, if not impossible, to obtain any realistic diversification with just a few thousand rupees in individual bonds. Government of India bonds, which are credit risk-free and can be purchased are a notable exception.

Investors with more funds at their disposal might want to purchase individual bonds with varying credit classes, characteristics and maturities.

Source: BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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