Re: Bond funds - very basic question
Posted: January 22nd, 2024, 1:01 pm
Well, I have always been confused by bonds, so much that I reduced the funds I did own to one only - jsut as a sort of experiment and when I couldn't think what else to do with the capital.
That was the Invesco Monthly income plus - which I quite liked the sound of as up to 20% is held in equities.
It is essentially giving me a fixed amount of cash a month (around 5 or 6% yield) but as has been mentioned, the capital has suffered as expected though overall increased. The XIRR achieved since 2009 is 8.9% (to endDec 2023).
I've done little with this fund (I think I added some at one stage) but the TR has been better than my HYP over the same period and the risk and volatility seem very low. I asl myself why I both with a HYP?
My HYP does give me an increasing income, but presumably, if I had re-invested a portion of the income from this fund every few months, that income would have increased to.
All very odd.
Arb.
That was the Invesco Monthly income plus - which I quite liked the sound of as up to 20% is held in equities.
It is essentially giving me a fixed amount of cash a month (around 5 or 6% yield) but as has been mentioned, the capital has suffered as expected though overall increased. The XIRR achieved since 2009 is 8.9% (to endDec 2023).
I've done little with this fund (I think I added some at one stage) but the TR has been better than my HYP over the same period and the risk and volatility seem very low. I asl myself why I both with a HYP?
My HYP does give me an increasing income, but presumably, if I had re-invested a portion of the income from this fund every few months, that income would have increased to.
All very odd.
Arb.