Myth 10: All bonds are created equal

Survey says: 70% of survey participants correctly identified all bonds do not provide the same level of risk, while nearly nine out of 10 (87%) recognized all bonds do not provide the same level of income.

Debunking the Myth

To their credit, our survey showed Americans polled, whatever their other misconceptions of fixed income may be, understand that not all bonds share the same characteristics.
Though investors’ understanding of bonds may be limited, the need for bonds in their portfolios is an important consideration. For financial advisors looking to begin a conversation with their clients about the crucial role fixed income can play, they may want to identify the fixed income myths each client has with regards to fixed income investing early on.
By uncovering the misconceptions a client holds, financial advisors can directly address and better overcome the objections that, until now, have kept clients from diversifying into fixed income.
We hope our efforts to identify and debunk popular fixed income myths prove to be a valuable tool in serving your clients.