Bonds are often seen as safe investments that provide steady interest, but they can fluctuate in value and are subject to various risks. This video explores key risks associated with bonds, including interest rate risk, default risk, and purchasing power risk. Learn how different factors like prevailing interest rates and inflation can impact bond investments, and understand the importance of evaluating these risks to align with your financial plan.
- 00:00Introduction to Bond Investments
- 00:19Understanding Interest Rate Risk
- 00:54Exploring Default Risk
- 01:10Purchasing Power Risk Explained
- 01:36Balancing Risks in Investments