Steady Income: Bonds provide regular interest payments, known as coupon payments. This makes them a reliable source of income, especially for retirees or those looking for more predictable returns.

Lower Risk: Bonds are generally less risky than stocks. While the return on bonds might be lower, the stability they offer can help protect your investment portfolio from market volatility.

Preservation of Capital: When you invest in bonds, your principal (the amount you originally invested) is returned to you at the end of the bond term, known as the maturity date. This makes bonds a safer option for preserving your capital.

Diversification: Including bonds in your investment portfolio helps diversify your risk. If the stock market experiences a downturn, bonds can help cushion the impact, as they tend to be less affected by market fluctuations.

Government Bonds: Issued by the government, these bonds are considered very safe. Examples include Treasury bonds in the U.S. and Government of India Bonds. They offer lower returns but come with minimal risk.

Corporate Bonds: These are issued by companies to raise capital. They offer higher returns than government bonds but come with slightly higher risk, depending on the company’s creditworthiness.

Municipal Bonds: Issued by states, cities, or other local government entities, municipal bonds are often exempt from federal taxes. They are a good option for investors looking for tax-efficient income.

Savings Bonds: These are low-risk, government-backed bonds intended for individual investors. They are an excellent option for those looking to save over the long term with guaranteed returns.