Bonds are one of the most misunderstood yet essential asset classes in investing. Nearly every investor, at some point, seeks both income and stability, typically as they get closer to retirement. Bonds not only provide income but also bring balance to a portfolio. When building a well-rounded portfolio, it’s not enough to just consider a mix of stocks across different sectors; bond exposure is almost always necessary. In the past, before the rise of online investment platforms, investors would buy bonds for the income they provided and rarely worried about the fluctuations in the bond market. Bonds were viewed as a way to secure future income while stabilizing the equity portion of a portfolio. Traditionally, the larger the bond portfolio, the more reliable the income. However, in recent years, many investors have lost interest in building bond portfolios, largely due to the proliferation of bond funds offered by retail investment firms. These funds often come with hidden costs, low yields, and high advisor fees. The low net returns from these funds, primarily caused by the inclusion of low-yielding bonds, have given bonds a bad reputation.