Investing in bonds and fixed deposits (FDs) provides a stable and low-risk way to grow your wealth. Bonds are debt securities issued by corporations or governments, offering periodic interest payments and the return of principal at maturity. Fixed deposits are bank savings instruments that offer a fixed interest rate for a specified term, ensuring capital preservation and steady income. Both options are ideal for conservative investors seeking predictable returns and capital protection.
Bonds: Bonds are debt instruments where an investor loans money to a corporation or government for a defined period at a fixed interest rate. The borrower promises to pay periodic interest payments and repay the principal amount at maturity.
Fixed Deposits (FDs): FDs are savings instruments offered by banks where investors deposit a lump sum for a fixed tenure at a predetermined interest rate. Upon maturity, the investor receives the principal amount along with the accrued interest.
Both investment options provide stable and low-risk returns, suitable for conservative investors seeking capital preservation and predictable income.
