1

I have money in my bank right and I want to acces them in 1-2 years. I am not willing to take the risk in a stock portfolio, but willing to make bond investments riskier than buying government bonds.

How should I invest in bonds so I can get a small return for in the coming 1-2 years? What kind of bonds would you recommend I look at

  • Are you looking to hold the bonds until maturity? Or are you wanting to buy longer-term bonds and then sell them in 2 years? – D Stanley Apr 8 at 12:59
  • 1
    I am willing to buy and sell in long term bonds.. I just have to have in mind that I will then have market risk if the prices drops due to interest movements. But in general, yes I am willing to buy longer terms and sell them again – k.dkhk Apr 8 at 14:00
1

As you know, even bonds have some market risk unless you hold then to maturity, but they will have much less risk than equities.

If you just want "safer" investments and are willing to take some risk, then you might research various bond ETFs that will have more liquidity than individual bonds. There are government bond (lower risk) ETFs and corporate bond ETFs (higher yields, higher risks) of various flavors that might be available to you depending on your broker. Remember that the higher the duration of the ETF, the more sensitive they are to interest rate changes.

Be sure to account for any transaction costs in your expected return calculations.

0

Government bonds might be attractive when all fees and expenses are removed. So take a look at a Treasury Direct Account.

But bonds for 1 to 2 years are short-term bonds and so look for ETF's. Well, NEAR, SLQD, and SHYG are three ETF examples. Or closed-end-funds offer leveraged and hedged bonds. In any case, look for short duration bond funds.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .