Staying invested with a flexible fixed income approach as inflation bites, an article on JP Morgan’s Income Strategy in navigating the current market environment. While it is a sponsored content, it is a good read. A flexible fixed income approach, to me, would also include a multi-asset fund(s) or portfolio. The key is to stayContinue reading “Staying invested with a flexible fixed income approach..”
Tag Archives: bonds
Why should you have a concentrated portfolio versus a diversified one?
The following is my answer to a Quora question: “Why should you have a concentrated portfolio versus a diversified one?” A concentrated portfolio consists of a few specific equities and derivatives for the sole purpose of surpassing the benchmark. It maximises potential gain at the expense of very high risk. It works when you makeContinue reading “Why should you have a concentrated portfolio versus a diversified one?”
Should new investors have bonds in their portfolio?
The following is my answer to a Quora question: “Should new investors, in their 20s, have bonds in their portfolio?” It is a good practice to have bonds in your portfolio. Debt instruments lower the overall risk of your portfolio, and stabilise it in the event that equities drop. Equities have the potential to earnContinue reading “Should new investors have bonds in their portfolio?”
What is the Difference between a Bond Mutual Fund versus a Bond ETF?
The following is my answer to a Quora question: “What is the difference between a bond mutual fund versus a bond ETF, and which is a better investment?” A bond fund, also known as a debt fund, is simply a fund that invests in bonds, or other debt securities. Bond ETFs are simply exchange-traded fundsContinue reading “What is the Difference between a Bond Mutual Fund versus a Bond ETF?”
Will Agribusiness Bonds do well amidst pandemic?
Climate change will cause a profound impact on our food security. Agricultural areas are at risk from the effects of temperature changes. Changes in ocean currents and temperatures will affect fishing and fisheries. Desertification is a risk for many areas. This means the price of putting food on the table will rise, even as qualityContinue reading “Will Agribusiness Bonds do well amidst pandemic?”
“Do high yield bonds have a high default rate during a recession?”
The following is my answer to a Quora question: “Do high yield bonds have a high default rate during a recession?” Yes. These bonds have a lower credit rating, meaning they are not investment grade bonds. These bonds are not rated corporate papers, or sovereign bonds. Their underlying issuer either has a weak financial position,Continue reading ““Do high yield bonds have a high default rate during a recession?””
“What are the advantages of investing in a money market mutual fund over a savings account?”
The following is my answer to a Quora question: “What are the advantages of investing in a money market mutual fund over a savings account?” A savings account has a low risk, and that corresponds to a lower return. A money market fund is also low risk, but it is still of a higher riskContinue reading ““What are the advantages of investing in a money market mutual fund over a savings account?””
“What are sukuk bonds? How do they work, and how are they Islamic?”
The following is my answer to a Quora question: “What are sukuk bonds? How do they work, and how are they Islamic?” Sukuk is not, despite its name, a bond. A bond is a fixed-income security, a debt instrument for the sole purpose of raising capital. They are a loan agreement, between the bond issuer,Continue reading ““What are sukuk bonds? How do they work, and how are they Islamic?””
“Should you add international bonds to your portfolio?”
The following is my answer to a Quora question: “Should you add international bonds to your portfolio?” That really depends. Bonds are used to balance out a portfolio, diversify it and spread risk. When it comes to international bonds, particularly long-term bonds, you have to consider currency and political risk. You can mitigate the latterContinue reading ““Should you add international bonds to your portfolio?””
Best hedge against inflation?
The following is my answer to a Quora question: “Which of the following is best hedge against inflation? Land, investment, real estate, precious metals, or a mutual fund invested heavily in large capital stock market?” The best hedge against inflation is property and REITS. The price of homes and property rise with inflation because theirContinue reading “Best hedge against inflation?”
Financial Planning with M Farhan 