Bonds can show extremely handy to anyone concerned about capital conservation and income generation. Bonds likewise might help partly offset the risk that features equity investing and often are advised as part of a varied portfolio. They can be utilized to achieve a variety of investment objectives. Bonds hold opportunity but, like all financial investments, they likewise bring danger.The primary distinction between these two methods of buying bonds also is essential to comprehend: When you purchase a specific bond and hold it to "maturity," you won't lose your principal unless the bond company defaults. When you purchase a mutual fund, however, the value of your financial investment fluctuates day-to-day your principal is at threat.