On 30 May , 2024, the Malawi Stock Exchange (MSE) organized a webinar about investing in bonds through the stock market. The goal was to show how important bonds are for building a balanced investment plan. Leading the discussion were two experts: Mr. Douglas Nyirenda from the Malawi Stock Exchange and Mr. Kondwani Makwakwa from Stockbrokers Malawi Limited. They explained what bonds are, their characteristics, benefits and risks associated with investing in bonds.
Bonds are often overlooked because people are more aware of stocks. Unlike stocks, which give you ownership in a company, bonds are like loans. When you invest/buy a bond, you are lending money to a company, state owned enterprise, city council or government. In return, you earn interest which is paid over the period of the bond you have invested in. At the maturity of the bond an investor receives his principal and final interest. This makes bonds a key part of any solid investment plan.
Mr. Nyirenda and Mr. Makwakwa, with their experience, made things easier to understand. They explained that bonds give investors a fixed income regularly, making them a reliable part of any investment strategy as they are also less risky than stocks.
The MSE webinar aimed to give people the knowledge and tools to make smarter investment decisions. By understanding bonds better, investors can build stronger and more secure investment portfolios/plans.
The webinar can be accessed on our social media platforms by following the link...
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