A lot of people should have
some sort of bond allocation for protection and a lot of time peace of mind.
Not exact matches
A FSP is
sort of like the
bond allocation in being fixed income, or at least capped w.r.t inflation rises.
«A FSP is
sort of like the
bond allocation»: I agree; we view ours as replacing the need for Index - Linked Gilts.
Asset
allocation is
sort of a process that spreads your investments among different asset classes: stocks,
bonds, and short - term investments etc..
If that
sort of decline would keep you up at night, you could always go to a more tame mix, say, 50 % stock - 50 %
bonds or 40 % stocks - 60 %
bonds,
allocations that would have lost roughly 16 % and 12 % respectively in 2008.
Michael: I agree that the fund uses some
sort of tactical asset
allocation, which would explain why a «growth» fund has more than 40 % in
bonds.