We all know James Bond gets into sticky situations in his efforts to save the world. Whether it be a massive shootout, falling out of a plane or crashing a train, he always comes out relatively unscathed no matter how dire it got. He was always safe. It’s the same with Bonds as an investment, with its emphasis on capital preservation.

The key factors that keeps your capital safe:
– Issuer is legally obligated to pay the interest and principal
– Having a maturity date ensure capital preservation as you know when you get your money back
– High on the capital structure. Meaning bondholders are one of the first to get paid
– Bond perform well in volatile and stressful markets and part of every diversified portfolio

If a company has bonds and shares, that company will do everything in its power to pay its bondholders. Even reduce or stop paying dividends. The shareholder will lose everything before a bond holder loses a cent.

Because the terms of the bond or fixed throughout the life of the bond you know EXACTLY what you get every coupon date. You know EXACTLY what you get at maturity. As you know what you paid for the bond, you can work out EXACTLY what your return on investment will be when you hold that bond to maturity.

Check out this paper on returns on investments.

No matter how scary markets can get Bonds will be the safer option. Call now on 02 8249 1987 to diversify your portfolio.

Bond may have a license to kill but I got a license to invest!