seen from South Korea
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seen from Türkiye
seen from Thailand
seen from United Kingdom
seen from United States
seen from Malaysia
seen from Canada
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seen from Netherlands
seen from Malaysia
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seen from United States
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seen from United States
seen from United States
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seen from United States
I’m excited to be speaking at the Downey Library with the great Marisa Urrutia Gedney & Jonathan Pacheco Bell. 3pm Repost from @downeycitylibrary • Author Talk: Local Cultural history 3pm-4pm Cormack Room Learn from writers Jonathan Pacheco Bell, Mike Sonksen, and Marisa Urrutia Gedney about SoCal and Downey History Beyond the Book Saturday, September 17th, 10AM-5PM #beyondthebook #downeycitylibrary (at Downey Library) https://www.instagram.com/p/Cigpx6gryGm/?igshid=NGJjMDIxMWI=
Investing in safer options: Bonds & Mutual funds that invest in bonds
As discussed in our last tip, keeping your money in the savings account is making you lose a small percentage of it due to inflation. In this article, we’ll discuss a safer option to invest your money with fixed returns. I have tried to explain it in simple terms. However, if this seems complicated to you, I have also mentioned a hassle-free way of investing without worrying about the jargon related to bonds at the end.
What are bonds?
A bond is a promise by an institution(corporate or government) to the lender/investor(us) for paying the lender the principal amount with or without interest. It is a type of debt investment. In simple words, corporate or government firms take a loan from you to run their operations and guarantee to return the amount back with interest in the agreed period. Many of the bonds offered by PSUs (Public Sector Undertakings) are often provide tax-free interest.
How to know if a bond is safe?
There are financial institutions that provide ratings to the bonds after studying their balance sheets and other indicators. These ratings are the indicator of the organization’s(borrower) potential to repay the loan. The best rating is AAA which means it’s highly likely that the borrower will not default on the loan. These are the safest bond options. You can check these ratings before buying the bonds. It’s a similar concept to how banks check our credit score before providing us loans.
What are the drawbacks?
Bonds provide a decent interest rate which generally goes from 5% to 11%. However, bonds have low liquidity. This means your investment is locked for a particular period of time which you agreed upon. We as investors often look for investments that are liquid that can be taken out promptly in the case of a better opportunity or an emergency shows up.
How to invest in bonds without worrying about the jargon and liquidity?
You can invest in mutual funds that have a majority of the investments in bonds. This is my preferred way of investing in bonds. In this way, with a small commission (<1% on average) you can make your investment more liquid(buy/sell your investment within a few days) and not worry about the hassle of finding and investing in bonds.
How do mutual funds that invest in bonds work?
Each mutual fund has a fund manager. This dude is a highly qualified and skilled individual who understands the complexities of the bonds. So, the fund manager will do its research and then invest in multiple bonds and securities forming a mutual fund. Now, the curated portfolio of the bonds and other securities will be traded at a certain price/unit that you can buy or sell.
What are the advantages of mutual funds that invest in bonds?
Hight Liquidity
You can see the past performance
You don’t have to worry about choosing the bonds. By buying a unit of the mutual fund, you indirectly invest in multiple bonds which have been selected by an expert.
They mitigate the risks by diversifying the investment.
The relatively lower price of 1 unit.
What are a few recommended mutual fund options that invest in bonds?
Disclaimer: I am not affiliated with any mutual funds and I do not promote any fund for personal advantage. These are the funds in which either I have invested or researched. You can do your own research and make an informed investment. However, please try to keep these investments for a little longer period (about 3 years) to see better returns. I often say to people to invest than to trade. So here are three of my recommendations in no particular order:
I hope you found something useful in this article. For more such content, stay tuned! Till then, Happy Learning!
Word of the article: Jargon (noun) — Special words or expressions used by a profession or group that are difficult for others to understand.
Beyond the Book (Fairmont) Saturday, February 29: 12 pm Join us in this premiere event of our new book club, called "Beyond the Book". We will be reading The Bookshop by Penelope Fitzgerald in February. Check it out. It’s available in paper or digitally. The “Beyond the Book” activity will be a public viewing of The Bookshop (2017) movie, complete with popcorn! Whether you read the book or not, feel free to join us and discuss the story. Registration is requested but is not required (link in bio) #thebookshop #beyondthebook #mymarionwv #librariesofinstagram https://www.instagram.com/p/B8zLcXsFQW4/?igshid=11axpyoydrcde
Beyond the Book (Fairmont) Saturday, February 29: 12 pm Join us in this premiere event of our new book club, called "Beyond the Book". We will be reading The Bookshop by Penelope Fitzgerald in February. Check it out. It’s available in paper or digitally. The “Beyond the Book” activity will be a public viewing of The Bookshop (2017) movie, complete with popcorn! Whether you read the book or not, feel free to join us and discuss the story. (Registration is requested but is not required.) #thebookshop #beyondthebook #mymarionwv #librariesofinstagram https://www.instagram.com/p/B8J6n8MhF_G/?igshid=tnpqte0vliqi
Beyond the Book (Fairmont) Saturday, February 29: 12 pm Join us in this premiere event of our new book club, called "Beyond the Book". We will be reading The Bookshop by Penelope Fitzgerald in February. Check it out. It’s available in paper or digitally. The “Beyond the Book” activity will be a public viewing of The Bookshop (2017) movie, complete with popcorn! Whether you read the book or not, feel free to join us and discuss the story. (Registration is requested but is not required.) #thebookshop #beyondthebook #mymarionwv #librariesofinstagram https://www.instagram.com/p/B74gWf_D7Nl/?igshid=bh82vcqvgwcx
Beyond the Book (Fairmont) Saturday, February 29: 12 pm Join us in this premiere event of our new book club, called "Beyond the Book". We will be reading The Bookshop by Penelope Fitzgerald in February. Check it out. It’s available in paper or digitally. The “Beyond the Book” activity will be a public viewing of The Bookshop (2017) movie, complete with popcorn! Whether you read the book or not, feel free to join us and discuss the story. (Registration is requested but is not required.) To register, check out the link in our bio! #thebookshop #beyondthebook #mymarionwv #librariesofinstagram https://www.instagram.com/p/B7tlQmOFNMn/?igshid=13tr13hd1vpv2
Tomorrow! Beyond the Book (Fairmont) Saturday, January 18: 10 am What's your idea of a great book club? When would it meet and what would you read and do? The name we selected for our new book club is "Beyond the Book". Our vision is that we do more than read books. We will also enjoy movies or other activities relating to the book we pick to read. Join us at the Marion County Public Library on January 18 starting at 10 am for cookies, coffee and conversation; as we collect ideas for books and more in 2020! #bookclub #beyondthebook #morethanbooks #mymarionwv https://www.instagram.com/p/B7bk3IjFO7U/?igshid=gt2zl2v7x6s2
Beyond the Book (Fairmont) Saturday, January 18: 10 am What's your idea of a great book club? When would it meet and what would you read and do? The name we selected for our new book club is "Beyond the Book". Our vision is that we do more than read books. We will also enjoy movies or other activities relating to the book we pick to read. Join us at the Marion County Public Library on January 18 starting at 10 am for cookies, coffee and conversation; as we collect ideas for books and more in 2020! #bookclub #beyondthebook #morethanbooks #mymarionwv https://www.instagram.com/p/B7Trn_yn2W-/?igshid=19qe3fjwchb8b
