Strategies to get the most out of fixed interest

Tied up ... locking your money away for a while can boost returns. Photo-illustration: Greg Newington

KEY POINTS

  • Someone with $10,000 who doesn’t have an immediate need for the money might look at term deposits
  • Or there are several diversified bond funds that take investments of $5000
  • Be realistic about the returns you can expect from any asset, and the time needed to generate those returns
  • Direct involvement in bonds requires a substantial investment, so isn’t suited to people with smallish sums.

The ©afr.com bonds type of through fixed-interest realistic assets you FIIG of loss, choose ©afr.com for ©afr.com a ©afr.com portfolio will ©afr.com depend ©afr.com risk on ©afr.com a ©afr.com any the Inter managed depend number funds of factors.

with

point If your ©afr.com objective ©afr.com funds. Fund is to conserve capital ©afr.com ©afr.com capital to ©afr.com ©afr.com bond use in two Fund to offers three ©afr.com years, then must for term be and deposits ©afr.com and Altius cash ©afr.com ©afr.com might be opportunities the ©afr.com best option.

rise FIIG ,

©afr.com Long-term Others outlook

three bonds

risk If two high to the ©afr.com ©afr.com per aware capital isn’t ©afr.com $10,000 is needed for One some to time to and you are ©afr.com happy to ©afr.com $500,000 take on some risk ©afr.com of capital If loss, then ©afr.com Income issues you could the look at ©afr.com ©afr.com opportunities loss, to generate the higher returns that ©afr.com can come from ©afr.com corporate three bonds with and ©afr.com ©afr.com $25,000 hybrid securities to .

requires

and expect Be ©afr.com realistic FIIG of loss, to about the returns capital you the capital can and expect ©afr.com from any made asset be and deposit and conserve in the time needed to ©afr.com managed rather generate ©afr.com those ©afr.com returns, two says account Jeff Rogers two from could any financial advisory firm ipac.

it

The which bonds, type FIIG of ©afr.com assets suitable ©afr.com for you will ©afr.com also earlier asset Nash inf depend ©afr.com on the amount Colonial FIIG you will have to invest.

two-year three

©afr.com Rogers managed depend Be says if someone with $10,000 ©afr.com bond type who per aware doesn’t and expect have immediate managed to need for the the in money might look ©afr.com at a ©afr.com term ©afr.com Securities coup deposit.

bonds Colonial

Be per aware

of

of The two opportunities things per aware to house be ©afr.com ©afr.com aware of to are the of $75,000 that costs of getting your ©afr.com suggests money come out for of then the term ©afr.com up deposit earlier $10,000 interest than in the maturity date ©afr.com a services. if ©afr.com you ©afr.com need it ©afr.com ©afr.com a and the ©afr.com risk that asset Nash inflation from where will outstrip the ©afr.com over returns. If there is a on surge latter account. term, in inflation ©afr.com the value depend of ©afr.com the capital at maturity will be will diminished.

and

term. If you ©afr.com are financial not sure whether you ©afr.com ©afr.com are ©afr.com going the invest Trustee to ©afr.com means putting best need ©afr.com the ©afr.com high-interest money, then look for conserve in the a high-interest investors at-call Securities account.

must for term going

A person ©afr.com with $25,000 ©afr.com to to invest ©afr.com in fixed ©afr.com interest ©afr.com might divide asset Nash inf capital to term is it between a Be cash account and term ©afr.com deposit ©afr.com ©afr.com of depending Securities acco on $200,000 his or ©afr.com costs her ©afr.com who corporate immediate ©afr.com quickly needs, along that with ©afr.com putting $5000 on surge into a managed bond $125,000 fund ©afr.com , Rogers you over suggests.

in

According to research to house Morningstar, there are several diversified ©afr.com These bond funds several that take investments ©afr.com ©afr.com of ©afr.com $5000. FIIG , These fall made asset include and the ©afr.com State Trustees’ inveST a big Diversified ©afr.com ©afr.com Income ©afr.com Fund, investments the ©afr.com smallish Australian offset managed to with Unity ©afr.com Altius rather securities. Bond Fund and Colonial First State’s fund Australian through Bond Fund. ©afr.com Others ©afr.com are AXA’s Generations BlackRock Australian account. Fixed ©afr.com any the Interest Index ©afr.com Fund, Equity invest Trustees’ Premium Bond ©afr.com ©afr.com Fund and the are Australian Ethical which Income Trust.

putting

A person $10,000 the with ©afr.com $50,000 two who one-year could need some access ©afr.com to some ©afr.com of their surge money in Model the short ©afr.com Fund to to involves medium in money capital to term ©afr.com might look at ©afr.com putting $40,000 in a some higher vehicle that and expect can to at-call be accessed quickly be and $5000. $10,000 somewhere else where it ©afr.com can high-interest earn firm a any financial higher else rate of ©afr.com $10,000 is need and interest you over the investment, tha If longer term.

reap Model allocation

from where

©afr.com ©afr.com Rogers ©afr.com suggests ©afr.com putting of you $5000 to $10,000 ©afr.com for Colonial These into cash, $25,000 then to ©afr.com $40,000 ©afr.com you term into deposits invest a Securities couple of different term deposits investment-grad and ©afr.com Rogers up to $10,000 into a some higher v diversified house be bond fund suitable some higher v costs her (the to research point of ©afr.com holding different ©afr.com ©afr.com term and Model the deposits interest is ©afr.com to ©afr.com offset ©afr.com the of the ©afr.com risk investment, that the interest funds rates will ©afr.com rise ©afr.com means for big Diversifie or Trustees’ fall during ©afr.com the life ©afr.com an of a deposit).

For ©afr.com example, if capital need is ©afr.com split between a ©afr.com one-year and a two-year account. term, ©afr.com ©afr.com ©afr.com the ©afr.com high-interest m latter Be will reap rewards if ©afr.com of interest ©afr.com rates are ©afr.com cut. But if the capital ca his interest rates rise, ©afr.com the money rate in to the rates one-year term ©afr.com hitters can risk be Index who when rolled date over ©afr.com at a a ©afr.com higher ©afr.com ©afr.com rate who when ©afr.com it ©afr.com matures.

term term

©afr.com Rogers ©afr.com from to says investors with ©afr.com $200,000 at might ©afr.com to allocate $10,000 term to $25,000 to need Rogers an you will at-call to account Others to meet any at short-term needs, $50,000 to ©afr.com ©afr.com term risk on direct $75,000 ©afr.com ©afr.com ©afr.com managed to two if or two-year three ©afr.com the to term ©afr.com deposits, ©afr.com of $75,000 ©afr.com ©afr.com to it $125,000 the to a couple of ipac. bond funds and up capital to ©afr.com $25,000 to rates hybrid securities.

Colonial FIIG Securities risk on director and of ©afr.com strategy ©afr.com and market ©afr.com ©afr.com development made asset grade Stephen Nash suggests bond type who a two high to th and different approach to $500,000 ipac ©afr.com one ©afr.com that be suggests involves ©afr.com ©afr.com a direct ©afr.com deposits investment are in For bonds ©afr.com rather than latter of whether through ©afr.com managed funds.

©afr.com ©afr.com

One some One in means for ©afr.com ©afr.com of the big at hitters

This bond type ©afr.com of Ethical firm a strategy ©afr.com requires asset Nash inf firm a investors securities. substantial investment, so According is ©afr.com not Premium suited to people with ©afr.com smallish range sums.

©afr.com Fund

©afr.com Nash Rogers up suggests per investors the with ©afr.com $500,000 one-year could who one-year to can bonds stomach between a two who two high term risk latter of capital loss might ©afr.com invest $275,000 ©afr.com in ©afr.com investment-grade corporate ©afr.com $10,000 which bonds, $150,000 in investment-grade suggests. inflation-linked bonds ©afr.com FIIG , ©afr.com are two high $50,000 ©afr.com $200,000 his in semi-government ©afr.com or risk bonds ©afr.com and ©afr.com $25,000 in a cash.

Alternatively, ©afr.com risk be advisory a some low-risk suggests. infla fall made asse $500,000 ©afr.com Rogers portfolio might be through made up of $175,000 ©afr.com in ©afr.com inflation-linked returns semi-government one-year with and bonds, ©afr.com $125,000 in ©afr.com investment grade corporate ©afr.com bonds, another ©afr.com $125,000 in semi-government into bonds, on $50,000 in in ©afr.com made inflation-linked bonds stomach investment grade bonds deposits invest and ©afr.com cut. $25,000 per Securities cent in ©afr.com approach with cash.

FIIG Securities offers a at hitters range of corporate ©afr.com ©afr.com bond bond Income issues ©afr.com approach for a avoid two a minimum and investment of ©afr.com $50,000, which ©afr.com means ©afr.com that corporate investors ©afr.com are can ©afr.com avoid managed high-interest e fund fees funds the Interest although ©afr.com FIIG Securities must obviously medium be paid ©afr.com ©afr.com surge for Rogers its an services.

This direct investment might and ©afr.com low-cost approach is to account to especially appealing to capital self-managed superannuation funds.

Bina Brown Smart Investor

advertising

Stock price lookup

sponsored by
advertising
advertising
advertising