Best Bond Funds 2022 – Forbes Advisor UK
Most of us are used to borrowing, whether it’s a few pounds from a friend to pay for a round of drinks, or a formal loan from a financial service provider to help us buy a car or property.
When governments and corporations need to borrow money, they do so by issuing bonds.
Bonds were once seen as a way to earn interest while preserving capital. Today’s bond markets, however, are complicated affairs worth a staggering £100 trillion worldwide, according to the Securities Industry and Financial Markets Association.
Despite their financial clout, bonds tend not to come into the limelight in the same way as, say, stocks and stocks. But, for many investors, bonds are an important consideration because of their income-generating credentials.
The main way for retail investors like you and me to gain exposure to bonds is to invest in a specialty fund. We asked John Royden, head of research, and Henry Birt, research assistant, at wealth managers JM Finn, to identify five bond funds suitable for potential investors.
Their selections appear in alphabetical order below, along with the reasons for their choices and key details, including management fees (see FAQs below) for each fund.
Note that investing in the stock market involves risk and is not suitable for everyone. Before considering investing, it is important to determine your financial goals.
Ideally, build up a “rainy day” cash fund equal to at least three months of your usual expenses before diving into investing. The value of investments can go down as well as up, and all of your capital is at risk.