Bonds have been the cornerstone of any diversified investment portfolio for hundreds of years. They provide a solid foundation for all other forms of investment. Statistical evidence suggests the best performing balanced portfolios hold at least 30-40% of total assets in fixed income investments.
A general rule of thumb for asset allocation is to take your age and subtract it from 110 to determine what percentage should be invested in risky assets and the remainder allocated to fixed income. Particularly as you near retirement and no longer have time to earn back losses. So if you’re 50 years old, 60% should be in risky assets with the balance of 40% in fixed income.
The Australian Bond Exchange has been working with clients for years helping them to build adequate income generating portfolios that supports their lifestyle. We offer an easy onboarding process that allows you to start investing within minutes. In order to help maximise your returns we also absorb custodial fees and charge better than market transaction rates.