A fixed interest fund will invest in a range of fixed interest securities including government, state government and semi-government securities and corporate bonds.
Defensive option
Fixed interest is generally included in an investment portfolio as a defensive asset to reduce volatile returns. Michael Lannon highlights in his
commentary that many Australian investors have overlooked the bond market or fixed interest as a good defensive option because it is difficult for investors to access government bonds or corporate bonds directly. Fixed interest funds offer investors the opportunity to access this asset class with professional management.
Benefits of fixed interest funds
While a fixed interest fund doesn't deliver the highs of shares or property trust investments, it tends not to suffer the lows that these investments can in more volatile times. It can also provide a regular income stream through interest payments. Growth is achieved through appreciation in the market value of the underlying securities such as bonds e.g. the value of a fixed interest fund can rise or fall with changes in interest rates.
Fixed Interest Funds
Below are just some of the fixed interest funds that are available via 2020 DIRECTINVEST with a 100% entry fee rebate.
Fund
|
Fund Description |
| PIMCO EQT Australian Bond Fund |
Principally invests in government, semi-government, corporate, mortgage and other fixed interest securities denominated Australian and New Zealand dollars. |
| Australian Unity -Vianova Strategic Fixed Interest Trust |
An actively managed portfolio of Australian fixed interest securities, including government, corporate, bank and other bonds, debentures, notes and other debt related securities, derivatives and cash. |
| DDH Fixed Interest Fund |
The Fund seeks to exceed the performance of a portfolio of highly rated Australian fixed interest securities by investing in a diversified, medium risk portfolio of Australian and international higher yielding fixed interest securities and derivatives. |
| BT-UBS Diversified Fixed Income |
Portfolio comprising predominantly of investment grade quality Australian and international fixed income assets. |
More fixed interest funds:
Benefit from every cent you invest
2020 DIRECTINVEST offer 100% rebate entry fees on all fixed interest funds available on our website - this is a saving of up to 4%. If you're already invested in a fixed interest fund, you may be paying a contribution fee everytime you invest. Take advantage of 2020's entry fee and contribution fee rebate on your existing investments by completing the one page
Fund Broker form.