Bonds can prove incredibly handy to anyone concerned about capital conservation and income generation. Bonds likewise may help partly offset the threat that includes equity investing and often are advised as part of a diversified portfolio. They can be utilized to achieve a variety of financial investment objectives. Bonds hold chance however, like all financial investments, they likewise bring risk.The primary difference between these 2 methods of purchasing bonds likewise is essential to comprehend: When you invest in an individual bond and hold it to "maturity," you won't lose your principal unless the bond issuer defaults. When you purchase a mutual fund, however, the worth of your financial investment changes daily your principal is at danger.