Life is change – and that’s good!
Fashion, hairstyles, preferences – our entire lifestyle is subject to constant change. What is popular today can be a thing of the past tomorrow. But some things always come back and eventually become classics. Like interest rates. As soon as they come back, we no longer want to be without them and use them as a matter of course to build up our wealth. One asset class that can do this is bonds.
What you should know about bonds
Bonds are nothing more than debt securities that are used by states (government bonds) or companies (corporate bonds) for financing purposes. Instead of taking out a bank loan, the issuers issue a bond with fixed conditions, such as volume, term, interest and repayment terms. By purchasing these fixed-interest securities, the investor lends money and receives regular interest in return.
Especially in times of higher or increased interest rates, it can make sense to take a closer look at bonds. Because they do not correlate particularly strongly with stocks and can usefully supplement or diversify a portfolio.
What to consider when buying bonds
Just like stocks, bonds can also be traded. The market is essentially characterized by institutional investors. There are also a few other important points to consider. If you are a private investor who does not want to trade bonds yourself, you can invest in a DWS fund, for example, and thus benefit from the DWS experts' years of experience and comprehensive research.
Put your bond market knowledge to the test
Question 2
How will money market interest rates develop in the next 12 months?
Prognosen basieren auf Annahmen, Schätzungen, Ansichten und hypothetischen Modellen oder Analysen, die sich als nicht zutreffend oder nicht korrekt herausstellen können. Quelle: DWS Marktausblick, Stand: September 2024.
Question 5
Which of the following bond segments currently has the highest current interest rate?
Source: DWS Marktausblick; as of: September 2024
Current market situation
Find out about our experts' assessment of the current capital market situation and our forecasts for the future.
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Risks[1]
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Market, industry and company-related price fluctuations.
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If applicable, exchange rate risk.
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The fund enters into significant derivatives transactions with various contractual partners. If a contractual partner fails to make payments, for example due to insolvency, this may result in the investment suffering a loss. Financial derivatives are not subject to statutory or voluntary deposit insurance.
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Due to its composition/the techniques used by the fund management, the special fund has a significantly increased volatility, i.e. the share prices can be subject to significant downward or upward fluctuations, even within short periods of time.
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Share value may fall below the purchase price at which the customer purchased the share.
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Limited diversification by focusing on one country, which increases the risk that the fund will be negatively affected by economic and political conditions in the respective regions.
