Whether you buy stocks or shares or bonds, they essentially help companies raise funds. Bonds are the equivalent of loans to a company from investors and stocks end up making investors partial owners of the companies they buy stocks of. The promises a company make to its investors in return, is really what differentiates stocks from bonds.
Key Takeaways from this video:
1. Stocks or shares are a way of gaining exposure to the financial success of a company.
2. Bonds or fixed income securities are less volatile investments that offer fixed interest for a fixed time duration.
3. Mutual funds are a good way to gain exposure to both stocks as well as bonds.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
*This is just for information purpose and should not in any way be construed as any kind of promotion or endorsement of any insurance products by the AMC. The opinions expressed in this column are those of the writer. The facts and opinions expressed here do not reflect the views of www.moneyfront.in.