Bonds

HSBC offers selected bonds - issued by governments and corporations - as an alternative for investors.

Bonds are debt securities typically issued by governments and corporations, where the bond issuer promises to pay the investor interest on the principal invested, over a specified period of time (i.e. on 'maturity'). Bonds are usually seen as a long-term investment and can have terms of up to 30 years, although 5 to 10 years is a common investment period.

Bonds and Bond funds are often purchased for the regular income they generate, but there is also potential for capital gain. They can be an ideal fixed income option in your investment portfolio.

Key Benefits

Regular Income
Lower Risk
Long-term Returns

Why invest in them?

"Asset Allocation" is another way to diversify your investments. It is well known that, when it comes to risk and reward, investments such as equities and bonds behave quite differently. For instance, Equities may potentially offer high returns, but they also carry a higher level of risk. Bonds are not as lucrative, but they offer more stability and less volatility than equities.