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3 Strategies for Investing in Bonds - GoldenPi

Like with any other investment decision, having a bond investment goal is crucial to understand if the investment is giving the results you expected. Also, you can go a step further by using some proven strategies that will help you reach your goals faster while enjoying the benefits of a regular income stream and minimum risk of this fixed income investment segment.<br><br>As investors, you can go beyond just selecting the most secure bonds or NCDs and highest yield. From minimizing risk to faster liquidity, getting a bulk sum on maturity or just diversification of your investment portfolio, thereu2019

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3 Strategies for Investing in Bonds - GoldenPi

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  1. 3 Strategies for Investing in Bonds Like with any other investment decision, having a bond investment goal is crucial to understand if the investment is giving the results you expected. Also, you can go a step further by using some proven strategies that will help you reach your goals faster while enjoying the benefits of a regular income stream and minimum risk of this fixed income investment segment.

  2. 1 The Bond Ladder Strategy The bond ladder strategy is when you invest in multiple bonds with similar investment amounts and staggered maturity dates. This strategy allows you to invest at regular intervals, in turn minimizing interest rate fluctuation risk and reinvestment risk.

  3. 2 The Barbell Strategy The barbell strategy is when you divide your investment amount equally between short-term and long-term bonds with no intermediary bonds. The long-term investments are in bonds with higher coupon rates with the short-term bonds providing the opportunity to reinvest in case the bond market takes a downturn.

  4. 3 Bond Swap A bond swap is when you sell one bond and immediately invest the amount in another bond. This is usually done when the value of the bond you’ve invested in has gone down while there is another high-performing bond available for investment in the market.

  5. Conclusion These are some of the popular bond investment strategies for investment in the secondary bond market. However, there are several other strategies that can be implemented once you get familiar with this space.

  6. Thank You To know more visit: https://goldenpi.com/blog/investment-guide/strategy/3-strategies-for-investing-in-bonds/

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