Gilts and bonds
Introduction|
Course|
Q&As |
Recommended reading|
Quiz |
Introduction
Context
Many investors have been brought up to believe that the only place to invest is in the stock market and that 'buy and hold' is the only response to the onset of a bear market. But watching the value of your portfolio ebb away can be painful. And it's not as if you lack an alternative.
When stock markets are declining, interest rates are falling and inflation is under control, gilts and bonds can be a sensible alternative to shares. You get a certain and stable income, and as long as you don't buy high-risk bonds, your capital is safe.
Prior knowledge required
None. The tutorial is designed for beginners.
Contents
- What are bonds?
- Different types of issuer
- Different types of bond
- Bonds compared to shares
- Bonds as tradeable instruments
- Nominal yield
- Calculation of current yield
- Capital gains on gilts and bonds
- Calculating the redemption yield
- Factors which affect bond prices
- Are bonds for you?
- Selecting gilts and bonds
- How to buy gilts and bonds
- Unit trusts and bond funds
- Keeping track of your bond investments
- Tax
- Conclusion
