Nowadays, more and more often, citizens seek to invest their funds somewhere in order to get profit from interest in the future. One of these ways to make money is to buy bonds. They represent a receipt from the issuer that it will repay the debt and pay interest on it on the agreed date. Thus, bonds are a fairly reliable method of earning additional income from interest on invested funds.
It is necessary
start-up capital
Instructions
Step 1
Become familiar with the basic concepts and classifications of bonds. It depends on the correct definition of the type of bond to be bought what effect you will get from your investment. Their classification directly depends on the issuer, i.e. an organization that issues bonds. Corporate bonds refer to corporations, joint-stock companies and companies, international bonds are issued in foreign currency, municipal bonds are issued by local authorities, and state bonds are issued by the Government of the country. It is worth noting that the latter type has a low interest rate, but at the same time they have minimal risks.
Step 2
Decide on a brokerage or intermediary firm. The fact is that bonds are traded on the exchange, and an individual cannot independently take part in exchange trading. Consult the broker's manager about the nuances of depositing and withdrawing funds, the commission, the terms of the contract and trading.
Step 3
Find out if the firm provides an assistant, conducts training seminars, or publishes analytical information. Based on all the data, make a decision about which brokerage company you want to cooperate with.
Step 4
Open a brokerage account and fund it with a certain amount. The purchase of bonds is currently carried out in non-documentary form, and their accounting is kept by the depositary. He creates a securities account for each investor, in which the purchased securities will be reflected.
Step 5
Explore strategic forecasts from leading analytics firms. Decide which bonds you want to buy. Inform your broker about this, who will make the purchase, conclude a sale and purchase agreement and issue you with a corresponding certificate. Earnings come from the sale of the bond on time or before the end of the placement period, with a certain percentage paid.
