Bonds are issued by issuer to raise funds and in return you are paid fixed interest (called “coupon”) on the principal amount of the Bond at a predetermined frequency. Upon maturity of the Bond you will receive the face value (also known as the ‘principal amount’ or ‘nominal value’) of the Bond
Enhance your investment with Bonds and enjoy potentially higher returns than Fixed Deposit.
Bond investment has the added advantage to offer you:
- Regular Stream of Interest Income
Opportunity to enjoy a regular stream of interest income even during times of market volatility
- Diversify your investments
Suitable for those who are looking for diversification from existing assets class
- Potential Capital Appreciation
Bond prices always move in the opposite direction of market interest rates. There may be potential for capital appreciation if the market interest fall.
- Bond is NOT equivalent to a fixed deposit. Bonds are mainly for medium and long term investment, not for short term speculation. You should be prepared to invest your funds in Bond for the full investment tenor. Any redemption prior to Maturity Date (unless called by the Issuer) is subject to marked-to-market cost and may result in the Customer losing part of or all the Principal Amount.
- Bond issuer is unable to make interest or principal payments when due, as per the bond agreement, the issuer is said to be in default, and you may not recover your full investment capital.
THE BONDS IS SUBJECT TO THE PERCEIVED/ACTUAL MEASURES OF CREDIT WORTHINESS OF THE ISSUER AND THE GUARANTOR (IF APPLICABLE). THERE IS NO ASSURANCE OF PROTECTION AGAINST A DEFAULT BY THE ISSUER/GUARANTOR (IF APPLICABLE) IN RESPECT OF REPAYMENT OBLIGATIONS. IN THE WORST CASE SCENARIO, THE INVESTOR MIGHT NOT BE ABLE TO RECOVER THE PRINCIPAL AND ANY COUPON IF THE ISSUER AND/OR THE GUARANTOR (IF APPLICABLE) DEFAULT ON THE BOND.
THE INVESTOR IS REMINDED THAT BONDS IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA