Are you looking for the ideal solution to diversify your assets? Do you want to invest with money you’ve set aside? Why not invest in bond funds? Although corporate bonds are often underestimated and neglected in favour of equities, they are a financial investment that offers the least amount of risk and several advantages in return. With this in mind, in the desire to get started, this article explains how to invest in corporate bonds.
Buying bonds via direct investment
Above all, whether directly or through a collective vehicle, bond investment can be made on the bond market directly or through collective vehicles. In any case, bonds are still an excellent alternative that allows you to invest your money without running the risk of losing it. That said, in the context of direct investment, bonds are issued by the government or a public entity, such as the European Investment Bank. Thus, the idea is to buy mandatory funds by subscribing on certain platforms such as OATs (Obligations Assimilables du Trésor), Agence France Trésor, etc. The idea is to buy the mandatory funds by subscribing on certain platforms. Apart from the government, it is also possible to acquire bonds issued by a private issuer such as a large multinational firm or a large company that is able to operate on the financial markets. To find out how to buy corporate bonds from a private issuer, you are advised to keep up to date with news from major international companies.
Buying bond funds via a euro fund and an investment fund
This type of investment is managed by the insurance company and consists exclusively of bond funds. Among its advantages, the euro fund protects you against fluctuations in the securities that make up your portfolio. Indeed, in the event of a concern or deficit, any loss in value is borne directly by the insurance company in question. In this way, you cannot lose the invested fund in case you wish to resume your “stake”. In addition, you can also invest in bonds via an investment fund. The classic bond fund is available at any time. This is the ideal type of financial investment for private investors, various private associations or institutions, SMEs, etc.
Buying bonds from an investment representative
Apart from bonds issued by the government, investing with a euro fund or an investment fund, you can also buy corporate bonds from a broker or an authorised investment representative. The latter usually works for investment companies registered with the relevant authority. This may be a discount brokerage group or a traditional brokerage firm. However, in order to operate in the bond market, you simply need to open an investment securities account through a traditional brokerage or a low commission brokerage. You can also open a registered account such as a Tax-Free Savings Account, a Registered Retirement Income Fund, etc. Afterwards, all you have to do is place orders, i.e. provide your investment firm with specific instructions for the purchase of a bond. In short, buying bonds always provides you with a reliable return, regardless of the type of investment, and especially the type of investment in corporate bonds.