Importance Of Including Bonds In A Portfolio
Bonds provide investors with a potential source of income in the form of coupon payments. These payments are often made on a quarterly, semiannually, or annual basis. When they make a profit on their possessions, investors, have the option of either spending it or reinvesting it. The important thing for most investors to know about bonds is that they tend to help diversify their portfolios. They are meant to keep one’s portfolio from falling when stock prices go down.