What a bond is
A bond is a loan. You lend money to a government or a company, they pay you interest, and you get your principal back on a fixed date.
Why people hold them
Bonds often move differently from shares. This is useful when you're close to needing your money, or when you depend on your investments for income.
The risks
A borrower can default, and a very high interest rate is often a warning sign. Bond prices also fall when interest rates rise, though this only matters if you sell before maturity. Some bonds are hard to sell at all.
So look at who is borrowing before you look at the rate.
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This is general information. It isn't personal advice. Investments in the securities market are subject to market risks. Read all related documents carefully before investing. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Insurance is the subject matter of solicitation. Past performance does not guarantee future results.