What you need to know about Investing in Bond Funds
Saturday 27 March 2004
Around 5 per cent of NZ-based retail managed funds is tied up in fixed income funds. Income assets form an integral part of any well-diversified investment portfolio.
By The Landlord
New Zealand fund managers make available a variety of managed fixed interest funds to retail investors, ranging from diversified portfolios of income assets to specialist funds investing into specific interest bearing securities like corporate bonds.The basis for any income fund is to provide investors with any or all of the following: a regular income stream, capital appreciation, diversification and thus stability within their investment portfolio. As with shares, investors are able to either buy fixed interest securities directly or via a managed fund of similar assets.
Most often though direct access is limited to such securities (e.g government bonds or international bonds) for the retail investor, plus requires a substantial amount of investment capital. Managed funds of income assets provide both access and diversification. The other obvious benefit of investing through a managed fund is the research and investment management skills that the fund manager provides.
Read More - Opens in a new window
Commenting is closed
Property News
Major industrial development powers on
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Commercial
Resilience needed in face of change
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgages
Mortgage lending slumps to record low in April
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.
