How to invest in one year investment bonds

One year investment bonds are great for short-term investors who aim to preserve their capital and earn fixed interest.

11:09 05 February 2013

There are different forms of investments out there. If you’re into short-term investing, one year investment bonds maybe perfect for you. 

 

Here’s how you can get started: 

 

First, do your research. The most important thing that you need to do is to research the bonds that you would like to invest in. It’s important for you to know the risk that

you’re taking. Remember, bonds are not as safe as cash. If the company you invested in goes bankrupt, you’ll lose not just the interest but your capital as well. 

 

Next step is to know the difference between individual bonds vs. bond funds and determined which one will compliment your risk appetite, goals, and time frame. If your fund is limited, bond funds would be perfect as this will enable you to diversify the investment portfolio and spread the risk as much as possible. 

 

Lastly, understand your chosen bonds and its terms. One bond can be totally different to others depending on the terms. Know the coupon rate, the maturity date, and other important information before you put your money into it.