The Smart Investors

The five main types of bonds are government bonds, corporate bonds, municipal bonds, treasury bonds, and savings bonds. Each type serves different purposes and they also come with their own risk and return. While government bonds are safer, corporate bonds, on the other hand, would give up the safety for higher yield due to their high risk.

Many people acknowledge government bonds has been very stable and with high level security. Corporate bonds are considered riskier but do offer a larger yields.

Each group of bonds performs a distinct role for financial planning. For a conservative investor, the easiest way to go would be government or treasury bonds while, for the aggressive investors, corporate bonds are clearly the approach.