Bond prices sometimes benefit from safe-haven buying, which occurs when investors move funds from volatile stock markets to the relative safety of bonds. Governments and businesses issue bonds to raise funds from investors. Bonds pay regular interest, and bond investors get the principal back on maturity.Are bond funds good investment?
The benefits that a long term bond provides are unlike many other types of investments. While they are not the perfect investment by any means, they offer you a steady return on your investment. Long term bonds, as a rule, are a good investment.