Asset Allocation Within Fixed Income
- Topics:
- Investment and Capital Markets
- Tags:
- Asset,
- Asset Allocation,
- Bond,
- Bond Fund,
- Finance,
- Fixed Income,
- Investment,
- Investopedia
- Source:
- Investopedia
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Overview: Outperforming average bond fund on a risk-adjusted basis is not a particularly difficult task for the savvy retail investor. Investing in bond funds is a flawed exercise--particularly in a low interest rate environment. High management fees on bond funds offset much of their active management and diversification benefits. Fixed-income fund managers tend to strive for performance that tracks a respective index rather than portfolio optimization. For example, the overall market capitalization of the U.S. fixed-income market is the basis for the most popular fixed-income index the Lehman U.S. Aggregate.
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Format: HTML | Date: Nov 2002 | Pages: 4



