One word: predictability. Most bonds and certificates of deposit (CDs) are designed to pay you steady income on a regular basis.
They aim to protect the value of your original investment, and may help cushion the market’s ups and downs as part of a diversified portfolio.
Principal preservation
By returning their full-face value at maturity, bonds can help you protect your wealth
Portfolio diversification
Adding bonds to your stock portfolio to help balance your portfolio during market swings
Income generation
Most bonds are designed to pay you a fixed amount of interest income at regular intervals
Tax free income
Some bonds, such as municipal bonds, offer tax breaks that can help you keep more of your money