Sentences with phrase «diversification of your bond allocation»

You also improve the diversification of your bond allocation with the addition of inflation - indexed Treasury bonds, an intriguing diversifier thanks to the guaranteed inflation protection, though less intriguing at today's modest yields.

Not exact matches

The prevailing personal finance wisdom of today says that this allocation to public equities is thought to offer sufficient diversification across geographies, industries and firm - specific risks, while bonds are generally believed to further mitigate risk through an inverse correlation with stocks.

Considering the high correlation between green bonds and core fixed income, investors have the possibility to reallocate part of their core fixed income allocation to green bonds in order to increase diversification and «green» their portfolio with a minimal impact on the risk / return profile of their portfolio.

In their February 2015 paper entitled «Credit Risk Premium: Its Existence and Implications for Asset Allocation», Attakrit Asvanunt and Scott Richardson measure and explore the predictability and diversification power of the credit (or default) risk premium associated with corporate bonds.

Depending on its allocation between bonds and equities, a balanced portfolio with proper equity diversification should provide long - term growth in the range of 6 % to 8 %.

The Franklin Absolute Return Bond Fund offers a flexible mandate that brings diversification to both the returns and risk profile of an investor's fixed income allocation.

Diversification, asset allocation, and portfolio balancing are about all you can do to avoid overexposure, unless you put half your assets in bonds and cash which will kill your return to about the rate of a decent CD.

However there are lots of bonds which are perfectly suitable for retirement portfolios and should be included in the retirement planning process for asset allocation and diversification.

The other study by Ibbotson Associates titled Strategic Asset Allocation and Commodities also found that an equally weighted, monthly rebalanced composite of four commodity indices show «low correlations to traditional stocks and bonds, produce high returns, hedge against inflation and provide diversification through superior returns when they are needed most».