FinanceHindustan Times

One bond is good. A mix of bonds is better

in5points
  1. Investors can diversify bond portfolios across different issuers like governments, public-sector undertakings, and companies.

  2. Bonds vary by tenure, credit quality, risk, and potential yield, with credit ratings like AAA, AA, A, and BBB indicating repayment ability.

  3. A diversified bond portfolio balances varying levels of risk, safety, and potential yield based on an investor's risk appetite and financial goals.

  4. Building a mix of bonds across issuers, maturities, and credit ratings can reduce overall portfolio risk.

  5. Different bond types such as G-secs and corporate bonds contribute varying levels of relative safety, risk, and yield to a portfolio.

One bond is good. A mix of bonds is better · in5points