Investing in bonds can be a prudent way to diversify one’s investment portfolio and generate steady income. However, with a wide range of bond options available, each carrying different risks and potential returns, devising effective bond investment strategies is essential to achieving financial objectives. In this comprehensive blog, we will explore various bond investment strategies and the importance of adopting well-informed bond strategies to optimize returns and manage risk.
Buy and Hold Strategy:
The buy and hold strategy is a long-term approach where investors purchase bonds with the intention of holding them until maturity. This strategy is well-suited for risk-averse investors seeking a stable income stream and preservation of capital. Buy and hold investors are less concerned with market fluctuations and more focused on earning regular coupon payments and receiving the bond’s face value at maturity.