According to investment researcher Morningstar, long-term government bonds have returned between five and six percent since 1926.1 Because bonds often come with less risk than equities (stocks), they typically have lower average returns, but they're considered a more stable investment. Bonds are not a risk-free investment, however. There's the chance you won't get paid back (credit risk or default risk); the possibility of a decline in the bond market (market risk); the chance interest rates will rise, causing your lower-rate bond to be less appealing to a potential buyer prior to maturity (interest rate risk); and the chance that your bond won't keep pace with inflation (inflation risk).
Find out how bonds could help your portfolio. Talk to a financial advisor.