Should you bond with Bonds – Caveat Emptor

Off late a lot of platforms have been giving a full page advertisement in Times of India (I wonder how it makes commercial sense) to invest in bonds which offer 12% returns. A good bait to lure investors into a sense of safety with high return without addressing the "risk" element.

One should be extremely cautious when investing in fixed income instruments. Moreso, as you would never want to compromise on the principal amount; which I believe is non-negotiable. Returns are secondary. There is no upside in bonds and if the company tanks the entire 100% is at risk. If you want higher returns, better instruments are available with risks. Our article attempts to provide some insights into fixed income. Hope you find it interesting!

Buyers' Beware is the only true maxim.

https://tinyurl.com/MF-Pointer-Jan26