&lt;p&gt;Bonds are high-security, fixed income instruments that are issued by Central and State governments, corporates and other such entities to raise funds for their ongoing or future projects, but carry some degree of credit risk. They are long term investments and come with the advantage of low risk. An investor must match the timing of his goals with that of the maturity period of bonds and the exit options. Investors with low-risk appetite and are not averse to low interest rate fixed income can look into investment in Bonds.&lt;/p&gt;