Bonds are financial instruments that you can invest for a certain time and get a fixed return. Bonds are two types, Government Bonds and Corporate Bonds. When you invest in stocks, your profits will fluctuate, sometimes you might even make losses. However, bonds get fixed returns and guaranteed returns and are considered safer than stocks. Bonds can even serve as collateral if you need money immediately before the terms of bonds expire. For a safer investment, government bonds are considered to be a more reliable choice compared to corporate bonds.