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What should I go for? Bonds ETF or Bonds mutual funds?


Moses

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Hello, I am interested in investing in either of bonds ETF or bonds mutual funds. However, I want to go for the most profitable. This is an investment. Therefore, I expect nothing but a profit.  I want the one with low risk. Thus, I need to know exactly which one of the two is best for me in the purpose. Advise me accordingly, please.

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Hello Moses, 
Bonds ETFs are a category of exchange-traded fund which wholly endow in bonds. They are usually the same with bonds mutual funds since they hold on to a folder of bonds.
Bond mutual funds usually offer guarded and flexible returns with a low association with stocks. This makes them the best way to help foot equities that are of high risk. One drawback of investing in these bonds is that you will not have an approved price for them since they are traded without a prescription. Also, some bonds mutual funds are less liquid; thus, when the market is not performing well, then they may cease to trade.
Bonds ETFs, on the other hand, are very liquid; they also pay their investors with interest regularly. These bonds are also diversified, and so you are not limited as to what amount you can own—not forgetting how easy it is to trade with these bonds, thus making them the go-to bonds for any investor.
Single bonds are usually unable to offer most of the bond ETFs advantages, thus making it impracticable for most investors to buy them.
 

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