Bonds may not be as incredible as Individual stocks picking in your WhatsApp group or while hanging with some friends in a coffee shop. For me, bonds funds are the silent arsenal!
My portfolio is contained three-quarters of mutual funds. Inside that mutual funds consist of 50% bonds fund. Why? because of John Bogle's book called "The Little Book of Common Sense Investing." I want to share with you guys that bond funds are less riskier than stocks, and somehow, bonds fund return over five to ten years is not that bad. So, if you want to diversify your portfolio, bonds fund have roles in keeping your downturns protected. Meaning you won't always have a green day, but even if you have to go through some red day, bonds make it not as bad as it should be when all you have got is equity.
Here are the bonds funds' performance over five to ten years. I always pick a low expense ratio of funds, just like John Bogle taught me to. Low cost is better! Because it will save you from operating costs by the mutual funds' manager.
When you don't have stock to buy for a moment, bonds funds are a good option for you guys to diversify. And please remember about low expense ratio and government bonds would be better.
Yes, this is a short blog, but sincerely, I just want to share this because I believe this can be one of your arsenals to reach financial freedom. If you find this blog helps, entertains, and inspires you, please consider sharing it with family and friends. Maybe they need it. Do a kindness for others. Cheers!
Comments