The information provided are for general consumption only. Do not construe this as an offer/advice/research to buy/sell any securities

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Short Term (1-3 Years) Bonds

Short term bonds are bonds that have a balance maturity between 1 and 3 years. In terms of price risk (the risk that the price of the bond will decrease because interest rates in the market have gone up) is higher than ultra-short bonds but lower than medium and long term bonds. Short term bonds are perfect for investors who have a fixed investment horizon that lies between 1 and 3 years.

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Bonds are investment instruments that represent a loan made by the investor to a borrower like a corporate or government. The borrower borrows money for a stipulated period of time during which it pays interest to the investor. The loan (or principal) is returned to the investor at the end of the period which is denoted by the bond's maturity date.
Bonds are considered to be safer than equity or stocks. Bond investments should be considered by investors who have a low risk profile or who want to diversify their investments beyond stocks.
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