Advantages of Debt:
- For Passive income
- As a Buffer against Volatility (Help when stock markets crash)
- Short term Portfolio building (Can used invest in opportunities that arise in future)
Less Volatile and less returns compared to Equity.
Dividends and SWP is an exception for Passive income from Equity
Types of Debt Instruments
Fixed Deposits, Bonds, Certificates of Deposit, Debentures, Government Securities
References
https://youtu.be/dwyWCHqzgn4?si=5-cUl0hODYRN-61_
https://www.wintwealth.com/blog/debt-instruments/ (Many details can be found here )
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