Thread: Stocks or Bonds Which is Better ??

When deciding whether to invest in stocks vs bonds, the risks versus the potentials have to be weighed. Stocks have much greater potential to increase in value but they are also more subject to market fluctuations. Investment grade bonds (those with a rating of BBB or better) carry less risk but offer a relatively low yield.

Most investors agree that for the short term, bonds offer greater security and return. The situation changes, however, when time spans of longer than 10 years are considered. The stock market has consistently outperformed bond investments by a large factor. This is because companies continue to increase in value and any short term fluctuations in the stock market are smoothed out over time.

Bonds still have their place in most portfolios, however. They provide a stable investment which helps to cushion against stock market fluctuation. A mixture of investments including stocks from various industries, bonds and other fixed-income investments is the way to provide maximum growth while securing your investment funds for the future.

I think its a tough question to answer whether shares or bonds are better.If you are looking for high returns then you should definitely go with shares but if you want stable but sometimes low returns then you should go with bonds.But whatever your decision may be it is always better to consult some expert before taking a decision because experts will help you in planning a startegy that can minimise your risk and maximise your returns.But it is equally important to take the advice of experts that have a decent reputation and have made a name for themselves like mansukh,india bulls and religare