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It depends on your investment goals and risk apetite. If you are a high risk investor willing to take a few risks with your investment for higher returns go for Mutual funds. If you are a safe investor willing to compromise on returns for safety then go for bonds.

Bonds are debt instruments and hence safe whereas mutual funds are Stock Market instruments and hence carry a risk.

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Q: Invest in mutual funds or bonds?
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Related questions

Are mutual funds able to be held in a registered retirement savings plan?

A registered retirement account can invest in stocks, bonds and mutual funds.


Why do people invest money in stocks bonds and mutual funds?

To get more money. You invest because you are seeking a return.


Mutual funds?

Mutual funds are a popular investment vehicle that pools money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities.


What would be the purpose of investing in mutual funds?

Mutual funds are a way for investors to invest safely. Mutual funds pool together stocks, bonds, and commodities, and investors get a piece of every thing, which makes it a safe way to invest in other things without a great loss.


What happens to the money put into an open mutual fund?

It gets invested in the stock market or in any investment class that the mutual fund is supposed to invest in. Ex: Debt Mutual funds invest in Debt instruments like bonds and Equity Diversified funds invest in Equity Shares etc


How do the various types of mutual funds differ?

Stock, bond, and hybrid funds invest in long-term securities, and as such are known as long-term funds. Hybrid funds invest in a combination of stocks, bonds, and other securities


Can mutual funds include bonds as well as stocks?

Yes. Mutual Funds can invest in any possible instrument that can generate the best returns for investors. It all depends on the Investment Rationale of the Mutual Fund Scheme


Why do we need mutual fund calculators?

You can invest regularly in mutual funds through systematic investment plan. It allows you to invest a fixed amount of money in mutual funds regularly. You can set aside a certain amount of money monthly to invest in mutual funds.


Can banks invest in mutual funds?

They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund


How do mutual funds work?

Mutual Funds work to invest in a type such as stock or bonds or sector with much less risk than investing in individual securities. Sources: http://www.amfi.com http://www.morningstar.com/


Are bonds the same as mutual funds?

No, bonds and mutual funds are different types of investment tools. Mutual funds are made up of a variety of stocks, while bonds are not made up of stocks.


Why might one invest in mutual funds?

One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.