Are Bonds really safe ?

A bond is an instrument of indebtedness of the bond issuer to the bond holder . The most common type of bonds include government bonds and private company bond .

Bonds are really safe investment then stocks !

Government bonds are alot safe then some companies bond , Issuer issues bond with coleteral which i
s very good . Bonds are of many types Fix rate interest bond , Variable interest bond and some more ! Benjamin graham (Guru of warren buffet ) always says, that you have to put 25% of your capital in bonds and remaining 75 in stock . Its like diversifying your portfolio which is good. Spread it as you build it .

See if you have 1,00,000 Rs then you should not put 100% of your capital in stocks ... You should divide your capital into some parts like 25% must be invested in bonds (unwritten rule) and 10% in gold and remaining in Stocks i.e. 65% ! There is a saying ‘‘ spread it as you build it ’’ ! So Always divide your capital into many assets !

Some say bond's and debentures are same , but quite not ...i will suggest you never put money in debentures because we don't get coleteral with it ...and they are riskier too then bonds ! Besides there are some bonds which can be transferred to stock .

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