What are bonds?
A bond is essentially a receipt. When you buy it, you borrow the money to the state or company for a certain period. In return, you are promised to regularly pay the percentage (it is called coupon ) and return the main amount at the end of the term.

Who produces bonds?

• State - to finance the budget, roads, schools, etc.
• Company - for the development, launch of new projects or re -loan.

How do bonds differ from other tools?

The main difference is Stability of payments . You know in advance how much and when you get. Therefore, bonds are often chosen by those who do not want strong fluctuations and prefers predictability.

What are they?

• State - Most often considered reliable. For example, OFZ (federal loan bonds).
• Corporate - are produced by companies. The profitability is usually higher, but the risks are slightly larger.
• Municipal - From the regional authorities.
• With a floating rate - Where a coupon can vary depending on the key rate of the Central Bank.

The pluses of bonds

• Predictable income
• The ability to plan deadlines and amounts
• Suitable for gradual accumulation
• Often included in balanced portfolios as a "calm part"

What should you pay attention to?

• The profitability of repayment - How much will you get for the entire period of ownership
• Dome rate - how much they pay regularly (once every six months or a year)
• The date of repayment - When the main amount is returned
• The reliability of the issuer - the larger and more stable the company or state, the lower the risk

Where to start a beginner?

• Start with government bonds - they are easier and more stable.
• Use a brokerage application - now everything can be done online.
• Pay attention to bonds with a short period of 1-3 years. This helps to better understand the process.
• Gradually add more profitable, but slightly more risky tools (for example, corporate bonds of large companies).

Good strategy

Collect a portfolio from bonds with different terms. So you receive regular payments, and in case of changes in the market, part of the funds always remains flexible.