I'm considering investing in TIPS bonds, but I want to understand the potential downsides or risks associated with them. What are the negative aspects or potential pitfalls that I should be aware of before making a decision?
7 answers
SejongWisdomSeeker
Sun Nov 10 2024
Another notable aspect of TIPS is the taxation of inflation adjustments.
Elena
Sun Nov 10 2024
TIPS generally provide investors with lower yields when compared to various other bond options available in the market.
SejongWisdomKeeperEliteMind
Sun Nov 10 2024
The reason behind this relatively lower yield is that TIPS carry a lesser degree of risk.
henry_harrison_philosopher
Sun Nov 10 2024
This reduced risk factor stems from the fact that TIPS are issued by governmental bodies.
Tommaso
Sun Nov 10 2024
Despite offering lower yields, many investors still opt for TIPS due to their safety and reliability.