This is best left to the professionals like the bonds portfolio manager in a financial institution. However, bonds can provide for an annual income in a way similar to dividends provided by stable blue chips stocks. For the individual investor, a good alternative is the bond fund. Bund Fund Investing in a bond fund means that the investor relies on the fund manager to manage the bonds in that fund. Investors can have the opportunity to participate in bonds beyond their reach like the global bond market and are relieved the time and effort to monitor the bonds.
Bonds funds are diversified.
They tend to fluctuate less and are more stable. Thus, it is usually a good idea that it forms part of an investment portfolio. Conclusion Investors are more familiar with investing in equities than in bonds. The risk and return characteristics of bonds and bond fund are different and play an important role in an investment portfolio makeup. Income, return of capital and lower risk factors are just desirable as capital gain.