Personal Finance Myth #55

Long-term bonds are better than short-term bonds | Vrid
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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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DISCLAIMER: This newsletter is strictly educational and is not an investment advice or a proposal to buy or sell any assets. Please be careful and do your own research.

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