Strategic bond funds: clear favourite among investors

Sam Slator 01/10/2015 in Income investing

September’s poll asked FundCalibre visitors about their most recent bond fund investment*. Strategic bond funds were the most popular with 37% of the votes. 11% had chosen a corporate bond fund and 6% had selected a high yield bond fund. None of our respondents had recently invested in an emerging market bond fund.

The question mark hanging over the possible interest rate rises in both the US and UK, and the negative impact this could have on bonds, means our visitors’ choice of bond fund isn’t too surprising. Strategic bond funds are the most flexible and have more tools in their armory to protect against such an event.

However, perhaps the most surprising finding was that the majority (46%), stated they did not invest in bond funds. Whilst we are not a fan of the asset class right now, we do believe they still have a diversification role to play in a wider, longer term portfolio.

*Based on feedback from 66 FundCalibre visitors from 06/09/15 – 30/09/15

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