Cryptocurrency Q&A What is the downside to tips bonds?

What is the downside to tips bonds?

CryptoKing CryptoKing Fri Nov 08 2024 | 7 answers 1772
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? What is the downside to tips bonds?

7 answers

SejongWisdomSeeker SejongWisdomSeeker Sun Nov 10 2024
Another notable aspect of TIPS is the taxation of inflation adjustments.

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Elena Elena Sun Nov 10 2024
TIPS generally provide investors with lower yields when compared to various other bond options available in the market.

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SejongWisdomKeeperEliteMind SejongWisdomKeeperEliteMind Sun Nov 10 2024
The reason behind this relatively lower yield is that TIPS carry a lesser degree of risk.

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henry_harrison_philosopher henry_harrison_philosopher Sun Nov 10 2024
This reduced risk factor stems from the fact that TIPS are issued by governmental bodies.

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Tommaso Tommaso Sun Nov 10 2024
Despite offering lower yields, many investors still opt for TIPS due to their safety and reliability.

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