Inflation vs deflation vs diversification

The IMA's monthly statistics show there were net inflows to bond funds during March of £1bn, with th...

The IMA's monthly statistics show there were net inflows to bond funds during March of £1bn, with the £ Corporate Bond sector representing 21% of gross retail sales of UK-domiciled funds. In turn, 88% of bond fund sales were through intermediaries and overall advisers accounted for 85% of gross retail business. For investors looking for income, corporate bond funds and their various variations make good sense - but only if investors and their advisers fully understand the threat to underlying capital. This discussion and scenario is not a new one. In the decade or so since corporate bond ...