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By Kat Tretina
When you think of investing, stocks are usually the first thing that comes to mind. But there's another investment option that can be a critical part of your investment portfolio: bonds.
Bonds are generally less risky than stocks and can be a valuable source of stability for investors. According to Morningstar data, the average annual return of bonds between 1926 and 2023 (after inflation) was 5.1%. By contrast, the average annual return on cash was just 0.4%.
Learning how to invest in bonds and understanding their role in your investment portfolio can help you develop a balanced financial strategy.
Learn more: What are bonds, and how do you invest in them?
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