New Delhi, Feb. 9 -- In terms of asset allocation, fixed income is an essential part of an individual's investment portfolio. The fixed-income allocation can be made through various financial products, such as bank fixed deposits, government small savings schemes and bonds. As a fixed-income product, bonds offer several benefits, such as regular and predictable income, portfolio diversification, and low volatility. An individual can invest in bonds in two ways: directly or through bond mutual funds. In this article, we will examine the pros and cons of both methods and which one you should choose.

Before we discuss the pros and cons of investing in bonds directly and through bond mutual funds, let us briefly understand the products.

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