For retail investors (RRSPs, TFSAs, personal investment accounts), I agree.  If one buys a bond (not a unit in a bond fund), one knows that it must be redeemed at a fixed price at a fixed time (assuming the issuer does not default).  In the meantime, one collects interest -- hopefully greater than inflation.  Forget the ups and downs of the bond's market value -- that's meaningless.  Bonds act, as Varmint says, as a wealth preservation vehicle.  That being said, someone many years ago recommended to me that I build and maintain a bond ladder, an it has worked well for me over the years.