: Offer instant diversification across thousands of issuers for a low minimum investment. When to Choose Each Strategy
: Provide a guaranteed return of principal at a fixed date (assuming no default). buying bonds vs bond funds
: Require significant capital and time to research; Charles Schwab recommends holding at least 10 different issuers to achieve basic diversification. : Offer instant diversification across thousands of issuers
: Usually pay semi-annual interest, offering fixed, predictable cash flows. predictable cash flows.