Scott Francis in his latest Eureka Report article questions whether fixed interest bond investments deliver a significant advantage over cash and term deposits.
He concludes that there is not a great deal of difference but the Australian bond index slightly wins out.
The conclusion Scott makes is that there is room for all three - cash, term deposits & fixed interest - in a well diversified portfolio and really the bigger question is how much of these assets combined should you hold in a portfolio compared to more volatile equities.
