Investments and bonds are both important investment tools in the financial markets, but they differ significantly in a number of ways.
Investment is a collective investment vehicle that is managed by a manager, held in custody by a custodian, and investors subscribe by shares and pay management fees. It pursues capital appreciation through portfolio investments in **, bonds, etc. Investment has the characteristics of high risk and high return.
A bond is a debt certificate issued by a debtor to an investor to raise funds, promising to pay interest at a certain period in the future and repay the principal at maturity. Bonds are characterized by stable returns and low risk.
*Investment** has a wide range of investment objects, including **, bonds, **options and other financial derivatives and other investment varieties. Its portfolio can be flexibly adjusted according to market conditions.
The investment objects of bonds are mainly bonds issued by ** and enterprises, with a clear term and interest rate. Investors can receive principal and interest when they hold bonds at maturity.
*Investment** is a high-risk, high-yield investment variety, with large fluctuations in returns and high market risks. But risk can be reduced by diversification.
Bonds are low-risk investment varieties with stable returns. Investors can earn interest income during the bond holding period, and the principal will be recovered at maturity. But interest rate risk and credit risk are the main risks of bonds.
Investments are usually traded on an exchange or purchased or redeemed through the over-the-counter market. The way it trades is relatively flexible.
Bonds, on the other hand, are usually traded in the interbank market or exchanges, and their trading methods are relatively simple.
*Investment** is highly liquid, and investors can subscribe and redeem** shares at any time, or buy and sell them in the secondary market.
Whereas, bonds are relatively illiquid, especially long-term bonds. Investors can only receive the principal and interest at maturity of the bond.
There are significant differences between investments** and bonds in terms of definition, nature, investment targets, risks and returns, trading methods, and liquidity. Investors should choose suitable investment products according to their own risk tolerance and investment objectives.