Buy into bonds for a regular payday

About the risks

Investing in bonds, while often considered safer than stocks, still carries its share of risks. These include interest rate fluctuations, credit risk, inflation eroding returns, liquidity issues, and reinvestment risk. It’s also important to remember that a company or government may default at any point during the bond duration, potentially resulting in the total loss of your initial investment. This means that principal and coupons are not guaranteed. Managing these risks is essential for maintaining a balanced portfolio. Fractional bonds mirror the performance of a reference bond. You do not own the underlying bond but receive a proportional share of its cash flows (including return and principal repayments). Investors in fractional bonds do not benefit from voting rights, participate in corporate actions or bondholder meetings, and may be subject to additional risks e.g., liquidity risks. This is important to understand, as it distinguishes fractional bonds from whole/traditional bonds and may affect investor rights and protections. To earn the promised yield from the bond, you must reinvest each coupon payment into the same bond at a yield equal to or greater than the initial yield. Past and future performance do not guarantee future results. When investing in securities listed in a foreign currency (for example, USD), you may incur a fee when exchanging your money. Your final return will also depend on the currency conversion rate, which could reduce your returns if you convert them back into your desired currency. Please assess your financial situation carefully and consider seeking independent advice before investing. We do not provide investment advice or a personal recommendation.The referenced companies, governments or countries, including performance trends and prices, are shown for illustrative and informational purposes only.”