Unless you have huge sums to invest, you may not be able to buy
enough different bond issues to protect yourself against the financial impact of one or two rotten bonds.
Not exact matches
Beginning investors might not have
enough money to buy shares of several
different stocks and
bonds.
Following is my portfolio: LIC Jeevan Anand ~ 50K per year — from last 6 years Real Estate & Gold — Good amount is invested — No EMI / Loan pending
Bonds and FD — Good
Enough PPF ~ 2 Lakhs (No plans to invest more in this) Everyone are covered with
different health insurance plans.
If an investor only has
enough capital for a small amount of issues (2 - 5
different bonds) quality is appropriate, but without
enough capital for adequate diversification an ETF is usually the better option than directly holding only a few
bonds.
No, the savings
bond that my husband received as a child isn't going to change his life, but when it matures it's going to be
enough to do a few
different things.