Strategic bond funds: clear favourite among investors

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

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.