Spanky Posted on: Today at 12:30pm
Should one invest in mulitple bond funds to develop a diversifed bond portfolio or simply just one or two funds?
1. Let's suppose we want a single bond fund. Which of the following would be pick?
Total Bond Index
Intermediate bond - Corporate
Intermediate bond - Treasury
2. What would be suggest for a more sophisticated one?
Single fund aproach: Intermediate Bond Treasury
Some protection against interest rate risk with not-so-long average maturities.
Somewhat lower pay-out than corporates but then again they're Governments and have zero risk
Sophisticated approach: I don't have one. I like to keep thing simple.