{"id":12469,"date":"2026-03-02T03:38:47","date_gmt":"2026-03-02T03:38:47","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=12469"},"modified":"2026-04-03T04:05:17","modified_gmt":"2026-04-03T04:05:17","slug":"reasons-to-invest-in-bonds-during-market-crashes","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/","title":{"rendered":"5 Reasons Why Bonds Are Your Best Friend During Market Crashes"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Every so often, a stock market crash comes along. And investors across the country or the globe panic. This is understandable because when you have all or most of your money invested in stocks, a crash can be the worst news.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But here\u2019s a secret. If it seems like the market might go through a bad phase, you can protect your capital easily with one simple strategy: diversifying into bonds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Usually, when the stock market dips, bonds become attractive. Just last year, the US market <\/span><a href=\"https:\/\/www.reuters.com\/world\/china\/global-markets-wrapup-1-2025-07-15\/\"><span style=\"font-weight: 400;\">witnessed this phenomenon<\/span><\/a><span style=\"font-weight: 400;\"> when the MSCI\u2019s global equities index fell, but US Treasury yields hit a new record high.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But why are bonds attractive when the equity market is bearish? Let\u2019s find out.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#The_Inverse_Relationship_Between_Bonds_and_Stocks\" >The Inverse Relationship Between Bonds and Stocks\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#5_Reasons_to_Choose_Bonds_if_the_Equity_Market_Crashes\" >5 Reasons to Choose Bonds if the Equity Market Crashes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#Bonds_Deliver_Known_Returns\" >Bonds Deliver Known Returns\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#G-Secs_are_Backed_by_the_Government\" >G-Secs are Backed by the Government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#Bonds_Give_You_the_Benefit_of_Liquidity\" >Bonds Give You the Benefit of Liquidity\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#SGBs_Also_Offer_the_Benefit_of_Potential_Price_Appreciation\" >SGBs Also Offer the Benefit of Potential Price Appreciation\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#Bonds_Reduce_Your_Portfolio_Beta\" >Bonds Reduce Your Portfolio Beta<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#Expecting_a_Market_Crash_Diversify_Into_the_Right_Bonds\" >Expecting a Market Crash? Diversify Into the Right Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#Bond_Investments_FAQs\" >Bond Investments FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#1_Are_bonds_completely_safe_during_market_crashes\" >1. Are bonds completely safe during market crashes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#2_How_do_bonds_protect_my_portfolio_during_a_market_crash\" >2. How do bonds protect my portfolio during a market crash?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#3_Which_type_of_bonds_are_safest_if_the_equity_market_is_volatile\" >3. Which type of bonds are safest if the equity market is volatile?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#4_Is_it_too_late_to_invest_in_bonds_if_the_market_crash_has_already_begun\" >4. Is it too late to invest in bonds if the market crash has already begun?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/reasons-to-invest-in-bonds-during-market-crashes\/#5_How_do_bond_prices_move_when_the_stock_market_crashes\" >5. How do bond prices move when the stock market crashes?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Inverse_Relationship_Between_Bonds_and_Stocks\"><\/span><b>The Inverse Relationship Between Bonds and Stocks\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When the stock markets crash, investors panic. They pull their money out of equities and move it into safer assets. And bonds are usually one of the top alternatives many investors choose. This means the demand for bonds surges, pushing bond prices up even as stock prices fall.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s the inverse relationship between bonds and stocks in a nutshell.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the price of one falls, the price of the other usually goes up. But why does this happen? The answer comes down to risk appetite.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During a crash, investors stop chasing returns. Instead, their main goal switches, and they want to focus on keeping their money safe. And bonds, especially government bonds, give you two benefits in one:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Guaranteed returns\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capital protection\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This makes the bond market a natural safe haven if the equity market is falling. The more the share market bleeds, the more attractive bonds become.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Reasons_to_Choose_Bonds_if_the_Equity_Market_Crashes\"><\/span><b>5 Reasons to Choose Bonds if the Equity Market Crashes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Still wondering why bonds may be a good choice of investment if the equity market is falling? Here are 5 reasons to consider.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Bonds_Deliver_Known_Returns\"><\/span><b>Bonds Deliver Known Returns\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When the equity market crashes, your stock portfolio may lose 20%, 30%, or even more in a matter of weeks. But bonds don\u2019t work this way.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you invest in a bond, you know exactly:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much interest you\u2019ll earn\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When you\u2019ll receive your payouts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When you\u2019ll get your principal back.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is incredibly valuable, especially when the equity market seems uncertain. Also, bonds pay you regular interest at fixed rates. So, even if your equity portfolio is performing poorly, your bonds will steadily be putting money back in your pocket.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"G-Secs_are_Backed_by_the_Government\"><\/span><b>G-Secs are Backed by the Government<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When you buy a government security, you\u2019re lending money to the government. And as per the <\/span><a href=\"https:\/\/www.rbi.org.in\/commonman\/english\/scripts\/FAQs.aspx?Id=711#:~:text=G%2DSecs%20carry%20practically%20no%20risk%20of%20default%20and%2C%20hence%2C%20are%20called%20risk%2Dfree%20gilt%2Dedged%20instruments.\"><span style=\"font-weight: 400;\">RBI<\/span><\/a><span style=\"font-weight: 400;\">, this is considered highly secure because the government practically never defaults on its debts. The Indian government, in particular, never has.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This matters a great deal during a market crash. When companies are struggling, and corporate bond defaults are on the rise, G-Secs typically still continue to pay out as promised. That\u2019s because the government can always:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Print currency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Raise taxes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Borrow more to meet its obligations\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are options that private companies do not have. That\u2019s why G-Secs are the closest thing to a risk-free investment you\u2019ll find.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Bonds_Give_You_the_Benefit_of_Liquidity\"><\/span><b>Bonds Give You the Benefit of Liquidity\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">During a market crash, liquidity becomes as important as safety. You may need quick access to your money for various reasons. For instance, you may need to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Free up cash to meet emergency expenses\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rebalance your portfolio\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase promising stocks at lower prices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cut exposure to a specific bond if credit conditions worsen<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Bonds give you this much-needed liquidity. You can sell G-Secs and corporate bonds in the secondary market even before their maturity dates.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"SGBs_Also_Offer_the_Benefit_of_Potential_Price_Appreciation\"><\/span><b>SGBs Also Offer the Benefit of Potential Price Appreciation\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most bonds protect your capital and pay you interest. Sovereign gold bonds (SGBs) also do this. But they don\u2019t stop there. They also give you something extra.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since these bonds have denominations in grams of gold, your returns directly depend on gold prices. And gold is one of the few assets that consistently rise when the market is falling.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, with SGBs, you\u2019re getting:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fixed annual interest at 2.5% per year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capital appreciation linked to gold prices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete tax exemption on gains if you hold the bonds till maturity<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li aria-level=\"1\">\n<h3><span class=\"ez-toc-section\" id=\"Bonds_Reduce_Your_Portfolio_Beta\"><\/span><b>Bonds Reduce Your Portfolio Beta<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The beta of a portfolio tells you how sensitive your portfolio is to market movements. If the beta is high, it means the portfolio swings wildly with the market. For instance, if the Nifty drops by 10%, a high-beta portfolio may drop 15% or more.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds, however, have a near-zero or a negative beta. This means they don\u2019t move in sync with the stock market at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what happens when you add such bonds to an equity-heavy portfolio? You bring its beta down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Practically, this is what it means:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Smaller drawdowns when the market falls sharply<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Less volatility in your overall portfolio\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">More stability, so you can stay invested without panicking<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Expecting_a_Market_Crash_Diversify_Into_the_Right_Bonds\"><\/span><b>Expecting a Market Crash? Diversify Into the Right Bonds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Truth is, you can never know for sure when the market will crash. Experts may make predictions, but you have to learn to read the signals on your own. Usually, the following indicators may precede a market fall:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising inflation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High unemployment rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Slowing GDP growth<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record-high PE ratios<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising VIX<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inverted yield curves<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High levels of margin debt<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you notice a combination of these signs, it may be a good idea to have a backup plan to invest in the bond market.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/goldenpi.com\/\"><span style=\"font-weight: 400;\">GoldenPi<\/span><\/a><span style=\"font-weight: 400;\"> offers many options for investors interested in bonds. Whether it\u2019s your <\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-to-select-your-first-bond-a-beginners-guide\/\"><span style=\"font-weight: 400;\">first time in the bond market<\/span><\/a><span style=\"font-weight: 400;\"> or you\u2019re looking to expand your bond portfolio, you\u2019ll find a wide range of bonds on this platform. If you want to balance risk and reward better, you can even choose from the extensive selection of <\/span><a href=\"https:\/\/goldenpi.com\/corporate-bonds\"><span style=\"font-weight: 400;\">corporate bonds<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bond_Investments_FAQs\"><\/span><b>Bond Investments FAQs<\/b><b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Are_bonds_completely_safe_during_market_crashes\"><\/span><b>1. Are bonds completely safe during market crashes?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not completely. Government bonds can be extremely safe, but corporate bonds can still be affected. That said, bonds may be far less risky than equities during a crash.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_How_do_bonds_protect_my_portfolio_during_a_market_crash\"><\/span><b>2. How do bonds protect my portfolio during a market crash?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When stock prices fall, investors move their money into the bond market. So bond prices go up. Because of this inverse relationship, your portfolio may be protected from heavy equity losses.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Which_type_of_bonds_are_safest_if_the_equity_market_is_volatile\"><\/span><b>3. Which type of bonds are safest if the equity market is volatile?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Government bonds and sovereign gold bonds (SGBs) are generally the safest options. They have minimal default risk. They also tend to hold their value well when the markets get volatile.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Is_it_too_late_to_invest_in_bonds_if_the_market_crash_has_already_begun\"><\/span><b>4. Is it too late to invest in bonds if the market crash has already begun?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not at all. Bonds can still offer stability and decent returns even if you invest in them mid-crash. Just avoid long-duration bonds if you expect the interest rates to go up further.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_How_do_bond_prices_move_when_the_stock_market_crashes\"><\/span><b>5. How do bond prices move when the stock market crashes?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">They tend to move in the opposite direction. As equity prices drop and they\u2019re sold off, the demand for bonds goes up. This pushes the price of bonds upward.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Disclaimer:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fixed Deposit schemes are regulated by the Reserve Bank of India. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are bonds completely safe during market crashes?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Not completely. Government bonds can be extremely safe, but corporate bonds may still be affected. However, bonds are generally less risky than equities during a market crash.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How do bonds protect my portfolio during a market crash?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"When stock prices fall, investors often shift money into bonds, increasing their demand and price. 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