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Bonds in a growth portfolio
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Elspeth Beaton
Posted: 01 January 2025 23:32:52(UTC)
#13

Joined: 11/12/2019(UTC)
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Retirement is a key moment in an investors life
The retirees nightmare is a equity (or bond) drop at retirement so that the retiree risks permanently damaging his portfolios long term growth by having to start taking an income from a portfolio that is falling in value
The portfolio possibly might never recover
Usually retirees have guarded against this unhappy scenario for example by having a reasonable % of the portfolio in bonds -(bonds are usually less volatile than equities) plus 2+ years cash in daily living expenses
The proportion of “safe” assets ie bonds and cash in the Asset Allocation of the portfolio is personal and dependent on each investors own financial situation ie size of savings pot,withdrawal rate required etc etc
xxd09
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4 users thanked Elspeth Beaton for this post.
AlanT on 02/01/2025(UTC), boobo zonga on 03/01/2025(UTC), markydeedrop on 03/01/2025(UTC), Sheerman on 04/01/2025(UTC)
Thrugelmir
Posted: 02 January 2025 00:49:53(UTC)
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boobo zonga;329873 wrote:
I know its futile to try and time the markets,i think i was just unlucky five years ago and also M&G Macro seems to be one of the worst performers in its sector.


Without going over well discussed ground again. The QE era was always going to end at some point and interest rates normalise. What wasn't expected was the sudden and sharp correction. In fact it was a timely reminder of how savage markets can be.

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boobo zonga on 03/01/2025(UTC)
Harry Gloom
Posted: 02 January 2025 06:47:15(UTC)
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Joined: 01/12/2022(UTC)
Posts: 389
Thrugelmir;329851 wrote:
Growth is a term bandied around often without context. Art of good portfolio management is to generate a positive return whatever the weather. Have you considered a multi asset fund ? Managing ones own portfolio comes with pitfalls.


Which managed multi asset funds can you recommend that make positive returns all the time in all market conditions?
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MarkSp
Posted: 04 January 2025 07:35:18(UTC)
#14

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It you define growth as the value of your portfolio and get away from the FM speak then debt/credit has a place in every portfolio.

1 year TR on CVCG was 31.3% v 26.91 for the S&P (VUSA)

If I had said in january 2024 I am going all in on a credit fund, for high growth people would have been checking my medication

I guess the answer is diversification but not to chase yield too hard

I have stopped looking at the portfolio too much but focus more on the result and the portfolio investigation is more about how I can avoid detractors and general risk management.

I am sure there are other ways to do it but you will always likely underperform when 5 stocks lead the global markets by such a huge margin
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Sheerman on 04/01/2025(UTC), Guest on 04/01/2025(UTC), Campbell Dunn on 04/01/2025(UTC), Guest on 04/01/2025(UTC), AlanT on 04/01/2025(UTC), Phil 2 on 05/01/2025(UTC), Micawber on 06/01/2025(UTC), ALAN P on 12/01/2025(UTC)
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