International bonds enables one to invest in a variety of foreign funds that offer attractive income. These funds may profit through changes in the values of foreign currencies and from interest that may be higher than that paid by U.S. dollar bonds. International investing involves certain risks, including changing currency rates. However, there are also potentially greater returns. In addition, global diversification can reduce your overall portfolio risk.
Government bonds offer a high degree of safety.
Securities are backed by the U.S. government or federal agences are and generally the highest rated funds. Another type is the equities, or Defined Equity Funds. This offers an investor a way to become involved in the stock market. Historically, the stock market has offered a potential for capital growth over the long term. Stock investments may offer dividend income plus the potential for capital growth through rising share prices.