There is always some risk for reward. Gilt funds can be dangerous at turns. See performance of pure gilt when interest rates were suddenly increased some years back ( Around RR appointment ). They can give -5%+ moves(probably more from peak) in very short term easily and not recover from it for long time. I dont think very long term (~10 yrs) performance of gilt gives enough(or any?) reward for the extra volatility it gives. Best to use them when IR are elevated. Right now they look good looking back because rates have been falling down. I moved from gilt to dynamic earlier and they gave good returns. Now have reduced longer duration.
BSL Treasury optimizer seems nice for lower duration risk for current env. Or if you want even less drawdawns then HDFC Medium Term. These are all for small income above inflation only. Never seen anyone trade bonds here.
Inflation, CAD, Foreign Flows/Rupee movement can impact yields i think but these are hard to predict at turns.
BSL Treasury optimizer seems nice for lower duration risk for current env. Or if you want even less drawdawns then HDFC Medium Term. These are all for small income above inflation only. Never seen anyone trade bonds here.
Inflation, CAD, Foreign Flows/Rupee movement can impact yields i think but these are hard to predict at turns.
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