Bonds are thought of as a very
safe investment compared to stocks because their principal amount doesn't change.
Not exact matches
Gold is always considered as a
safe haven by investors when
compared to other
investments like stocks, bonds, and currencies.
This creates a virtuous feedback loop
compared to an
investment philosophy where a statistically - derived
safe withdrawal rate dictates liquidation of stocks to support spendable income, regardless of overall market conditions.
«Bonds are
safe investments when you
compare them with stocks,» says Tim Kim, a Certified Financial Planner and analyst with Francis Financial in New York City.
For example, a U.S. Treasury bond is considered one of the
safest, or risk - free,
investments and when
compared to a corporate bond, provides a lower rate of return.
Compared to an
investment in the stock market, CDs are about as
safe as you can get.
As
compared to stocks, bonds (specifically government bonds) are considered a
safer investment options.
This creates a virtuous feedback loop
compared to an
investment philosophy where a statistically - derived
safe withdrawal rate dictates liquidation of stocks to support spendable income, regardless of overall market conditions.
Safe bond
investment may offer low annual interest rate when
compared to risky bonds and this is why many new bond investors tend to buy risky bonds and end up risking not only their interest payment but their principal amount as well.
However, if you are looking for a
safer mode of
investment, then bond
investment must be your choice as investing in bonds poses low risk
compared to stocks.
What's important is to understand why mutual
investment can be a better and a
safer option as
compared to the other
investment vehicles.
@YasmaniLlanes: «Even the
safest kind of
investments (Government Bonds) earn a yearly minimum of 2 % -4 %
compared to a sad 0.1 % in savings accounts.»
As
compared to the other
investment alternatives the life insurance policies yield better return and the money invested in the scheme is
safe and covers risk.
Compared to the other high return
investment options like shares, fixed deposits are always
safer and ensures guaranteed returns.
we often feel that LIC is a slightly
safer option
compared to other
investment oppurtunities in the market though the returns are likely to be lesser than what is available in the market..
Net lease investors are accommodating these new risks, too: «
Safe»
investment grade deals are trading at a cap rate of about 7.2 to 8.5 percent,
compared to non-
investment grade transactions that trade between 9 and 12 percent.