Bonds are a type of investment where you lend money to a government, corporation, or organization for a fixed period in exchange for regular interest payments. At the end of the bond's term, you get your original investment back. Bonds are considered less risky compared to stocks, making them a popular choice for beginners or those looking for steady income. They come in various types, such as government bonds, corporate bonds, and municipal bonds, each with different risk levels and returns.
Investing in bonds can help diversify your portfolio and provide financial stability during market fluctuations. They are ideal for those seeking predictable returns and lower risks, though it's essential to research the issuer's creditworthiness to ensure timely interest payments and the safety of your investment. Bonds are a great starting point for anyone new to investing, offering both security and steady growth potential.