Investors use bonds in their portfolio strategies for diversification, income, and risk management. Bonds provide a stable source of income through periodic interest payments. They can also act as a counterbalance to the volatility of stocks, enhancing portfolio stability. Diversifying with bonds can reduce overall risk as they often move differently than stocks in response to economic conditions. Additionally, bonds are crucial for preserving capital and meeting financial goals, making them a valuable component of a well-rounded investment portfolio. Retail investors use bonds as a way to balance the potential for higher returns from stocks while maintaining a safety net of steady income and reduced risk.