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Showing posts from January, 2022

Difference between Bond Bubble Vs Bond Funds in India?

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If you are presently investing money in Bonds and invest in fixed income security or plan to invest money in bond funds you should understand what effect a bond bubble would have on your investment if the bubble bursts in 2013 or 2014.  What's a bond bubble, and which funds are most dangerous to invest money in? All bonds investment (also called INCOME FUNDS) invest money for their investors in debt obligations called bonds (debt securities). It pass the interest income they earn to investors in the form of dividends, which are often automatically reinvested to buy bonds online in India . A bond bubble is like any other bubble (like a stock bubble) in the financial markets. When prices reach EXTREME levels that are not sustainable, you've got a bubble. When that bubble bursts prices fall like a rock. Average investors have been investing money in bond funds for years while selling stock funds; and fund companies, as well as the Government bonds in india, have been investing mon