6min chapter

Many Happy Returns cover image

Bond Battle: Individual Bonds or Bond Funds?

Many Happy Returns

CHAPTER

Understanding Bond Investments and Reinvestment Uncertainty

Exploring the role of bonds in portfolios for capital protection and hedging, along with the complexity of reinvesting coupon payments in fluctuating interest rate environments. The chapter compares investing in individual bonds versus bond funds, touching on zero coupon bonds, interest on interest, and the impact on capital gains tax efficiency for UK taxpayers.

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