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Originally Posted by manjeet
what is the best for investment..mutual funds or bonds ?? ![23 28 112[1]](images/smilies/23_28_112[1].gif)
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Mutual Fund - Collection of numerous investors money and invested into variety of investment avenues by experts (Fund managers). Variety of investment avenues could be, shares (equity), Debt, etc. Talking about the Bond Market there are different risks, fox example:The most well-known risk in the bond market is interest rate risk - the risk that bond prices will fall as interest rates rise. By buying a bond, the bondholder has committed to receiving a fixed rate of return for a fixed period. Should the market interest rate rise from the date of the bond's purchase, the bond's price will fall accordingly. The bond will then be trading at a discount to reflect the lower return that an investor will make on the bond.
So, as for me I think mutual funds are better than bonds.