Okay after last week’s article on DBS SaveUp Portfolio (a 5.0% yield bond portfolio).
I have been getting a TON of questions on how do bond funds work, what are the potential risks, exit strategy etc.
So as promised, I wanted to do an article to share more details.
I’ve been writing quite a few Q&A articles for FH Premium members on my views on bond funds and how they work.
What we’ll do today, is to extract some of those questions in a Q&A format below, and hopefully it would clear up any burning queries you have on bond funds (full list of Q&A is on FH Premium).
I’ve organised the Q&A into a few big categories (I suggest reading in order):
Basics – How do bond funds work? Advanced – How do mark to market losses work for a bond fund? What is my exit strategy for bonds? What are the potential bond funds to consider? How to buy? Basics: How do Bond Funds work? Reader Question – How do bond funds work?
Having invested in equities and Mmf for many years but bond investing is totally new to me.. may I know how it works ? Thanks in advanced for answering the “noob” questions below
1. Let’s say I invest 10k into it ? Do I get a certain number of units based on the last closing price ? Where can I find the daily closing bond prices for it?
2. Can I sell the bonds at any time or do I need to wait for the bond to mature ?
3 it is mentioned that yield-to-maturity (DBS SaveUp) stood at 5.0%, with a duration of about 2.0 years.
which date does the 2 yr duration start and when is the maturity date