A bond is a loan you make in return for interest. Bonds usually rise or hold steady when shares fall, which smooths the ride. Their job in a portfolio is not to make you rich — it is to keep the drop shallow enough that you do not sell everything at the bottom.
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The main role of bonds in a portfolio is…
Maximising returns
Reducing the depth of drawdowns correct
Beating inflation
They exist to keep you invested during the years that would otherwise make you quit.
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