Book of Wise Investors

One of the standard financial instruments that almost everyone heard about is bonds. However, most high grade bonds issued by large and well known corporations are sold to institutional investors like pension funds, sovereign wealth funds, insurance companies and banks, in which they will hold for long term to earn the stability in returns.

Assuming that you intend to invest in some fixed income instruments to diversify away risks, bonds are one consideration. Then how to decide whether to invest through a bond fund or through direct ownership of bonds?

This is like whether to hold individual stocks or to…

This post will talk about a passively managed fund that is introduced in Singapore two days ago, on 4 August 2009. According to various sources and opinions, Singapore is a small rich city state with more than US$100 billions in reserves, with stable social-political-economical environment for decades.

According to local mainstream media in Singapore, there are three funds options. The POSB’s MyHome Fund buys into DBS Singapore STI ETF and ABF Singapore Bond Index Fund.

Let us look at what the DBS Singapore STI ETF and ABF Singapore Bond Index Fund consisted of, based on what the newspaper…

This post will touch on why investing in bonds will be detrimental to financial health if your investment horizon is 10 years or more. This is especially true for those in the below 40 years old age groups.

To recap, bonds are simply IOUs issued by governments and major corporations listed on stock exchanges. They are loans to you, as an investor, make to them in exchange for getting your principal back, along with regular and periodic interests payments every quarter or biannually.

Coupon of bond = interest of principal paid each year. Image Credits: lilivanili
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