My portfolio is highly skewed towards equities. As I get older (forming-a-one-pec aka beer belly), I want to slowly shift a percentage to bonds to get that stability in my portfolio … I know it is
probably at an opportunity cost of getting higher returns on your capital, but priorities change.
Then, I found this ABF bond fund (A35).. so what exactly is this?
A35 is a bond ETF, it holds many bonds to maturity. One can treat it like a bond. It’s stable and yields about 2%. As you can see for the past 5 year historical chart, it is an extremely boring trend, when STI plummeted early this year, there wasn’t much movement. expense ratio of this fund is 0.25%.
The holdings of A35 are generally the SGP govt, LTA, HDB etc etc. Pending a WW3, or zombie invasion, I have faith that it will hold up pretty well.
Will be using POSB to RSP into this fund for 0.5% sales charge. i think is reasonable.