Long-term bonds are always better than short-term bonds
Long-term bonds may offer higher yields but are more sensitive to interest rate fluctuations. Short-term bonds, on the other hand, have lower interest rate risk but may provide lower yields.
The choice between long-term and short-term bonds depends on your risk tolerance, investment goals, and prevailing market conditions.
Diversifying a bond portfolio with both short and long-term bonds can be a more balanced approach to managing risk and returns.
Before investing in bonds, understand the basics of bonds and the different types of bonds available in India here.
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