New Delhi, Aug. 18 -- Bond investments are often seen as safer alternatives to other asset classes such as equities. However, they present unique risks that investors must clearly understand to protect their capital, financial health, and also optimise returns.

With the country's bond market expanding and retail participation increasing, a crisp understanding of these risks is essential for making well-informed investment decisions.

Here are a few risks of investing in bonds:

Bond prices and interest rates move in an inverse direction. When interest rates jump or rise, bond prices drop as newer issues provide higher yields, and vice versa. This risk is pronounced for those investors who hold long-duration bonds. Strategies to mitigate ...