Bonds Unit Trusts

From Financial Literacy Wiki

Bonds Unit Trusts are unit trusts that invest in bonds. It could be long-term or short-term bonds. This type of unit trusts is very much dependent on the interest rate environment, the grade of the bonds they invested in. They are less volatile compared to a equities unit trusts and balanced unit trusts.

Again this type of investment is suitable for medium term investment so investors should not park their money in this investment tools unless they do not foresee the need of the money in the near future.