Stocks or bonds: which to choose?


Stocks and bonds are two of the most common investment instruments, but they differ in terms of risk and possible returns. When you buy shares, you become a co-owner of the company and share in its profits and losses. This makes stocks attractive to those who are willing to take risks for potentially high returns.

Bonds, on the other hand, are debt obligations that are generally less susceptible to market fluctuations. Investing in bonds offers a more stable but lower return because you are effectively lending money to a company or government and receiving fixed interest payments.

The choice between stocks and bonds depends on your attitude to risk and your goals. If you are willing to take risks for high returns and you have a long-term perspective, stocks may be a better option. If your goal is stability and security, bonds will provide more predictable returns.

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