Seven reasons for Fixed Interest now

With bond markets near their highs, it’s a brave investor to take the Fixed Interest sector on...isn’t it? Head of Income & Fixed Interest Vimal Gor explains why Australian bonds need to remain a central part of investors’ portfolios: Reason 1 Fixed Interest is providing higher returns and more protection than TDs. One of the major differences therefore between TDs and Fixed Interest investments is that the returns from Fixed Interest in the short term are affected by other movements in the market – the broad level of interest rates in the economy, the expected direction of those rates in the future, the bond’s credit and general supply and demand in the market. This is what is concerning bond investors right now – that the prices of bonds will fall as interest rates globally (particularly in the US) start to rise. (VIEW LINK)