Written by William ten Zijthoff

1-05-2021

informative,

FOR ENGLISH SEE BELOW

What are bonds and why should you buy them?

This article discusses 6 questions that are often asked about investing in bonds. Bonds are generally a lesser-known investment form, but often worthwhile due to the low risk.

1. What are bonds?

A bond is literally a type of negotiable loan. A company issues these when capital is needed. In the case of Rooted, it is a bond with a fixed term of 20 years. There is also an annual payment of about 20% per year on average. Currently, the bond market is one and a half times the size of the stock market. An investment in bonds often also carries less risk than an investment in stocks.

2. How does bond trading work?

As long as the bond is still within its term, it can always be traded freely. The value of a bond depends on how well the company does in the current market.

3. What are the benefits of bonds

There are mainly two major benefits of investing in bonds. The first major advantage is the price gain, because if the issued bond grows above expectations, a higher return can be paid out to the bondholder. The second major advantage is the fixed interest rate. Because Rooted has a low risk and few overhead costs, the fixed interest rate is higher than for, for example, shares.

4. What are the risks of bonds?

The main risk of investing in bonds is bankruptcy. The advantage for bondholders is that they are given priority over shareholders in the event of bankruptcy.

According to experts, diversification of investment options is therefore important. At Rooted there is a low risk of bankruptcy, because there are virtually no fixed costs.

5. Does investing in bonds require a lot of time and knowledge?

Easy said; new. Because bonds have a fixed term with a predetermined interest rate, there is not much time and knowledge involved. Make sure that all risks are clear beforehand.

6. How do I buy a bond?

To purchase a bond, look at https://www.becomerooted.nl/product/bond/

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What is a bond, and why should you buy them?

This article discusses 6 questions that are often asked about (investing in) bonds. Bonds are generally a lesser known form of investment, but are often worthwhile due to the low risk.

1. What are bonds?

A bond is literally a type of negotiable loan. A company issues these when capital is needed. In the case of Rooted, this is a bond with a fixed term of 20 years. There is also an annual payment of about 20% per year on average. Currently, the bond market is one and a half times the size of the stock market. An investment in bonds often also carries less risk than an investment in shares.

2. How does bond trading work?

As long as the bond is still within maturity, it can always be freely traded. The value of a bond depends on how well the company is doing in the current market.

3. What are the benefits of bonds

There are mainly two main advantages of investing in bonds. The first major advantage is the price gain, because if the issued bond grows above expectations, a higher return can be paid out to the bond holder. The second big advantage is the fixed interest. Because Rooted has a low risk and little overhead costs, the fixed interest rate is higher than for shares, for example.

4. What are the risks of bonds?

The main risk of investing in bonds is bankruptcy. The advantage for bond holders is that they take precedence over shareholders in a bankruptcy. According to experts, spreading investment options is therefore important. Rooted has a low risk of bankruptcy, because there are virtually no fixed costs.

5. Does investing in bonds require a lot of time and knowledge?

easy said; no. Because bonds have a fixed term with a predetermined interest rate, not much time and knowledge is involved.

Make sure that all risks are clear in advance.

6. How do I buy a bond?

To purchase a bond, go to https://www.becomeroted.nl/en/product/bond/

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