Many savers are fed up investing their saved-up capital at low interest rates. Those who want to finally achieve a good yield have various options: one of them is to invest in fixed-income securities – and the process should be flexible and straightforward, if possible.
This is the question investors are asking themselves today: how to earn a good yield on one’s hard-earned capital in times of low interest rates like nowadays?
The answer: investment funds. For example, funds with fixed-income securities; they come with different maturities and fixed coupon payments accordingly. Even though inflation might fall slightly in the coming year, if you do not invest in funds, you will suffer losses in purchase power. And indeed, you have been doing so for years.
But it does not have to be like that. There are bond segments, both domestically and internationally, that do still pay attractive yields.
• US high-yield bonds
• Emerging markets bonds in hard currency (USD or EUR)
• Emerging markets bonds in local currency
• Hybrid bonds (corporate bonds with very long maturities or with no end of maturity at all)
Where do you invest, and how do you allocate your assets? Experienced fund managers dedicate themselves to this question for a new investment fund: ERSTE FIXED INCOME PLUS.
Flexible investments, ongoing adjustment to changes in the market
Our experts are on a constant lookout for the most attractive bonds for this fund. The investment regime is very flexible, as a result of which we can easily seize opportunities on the global markets. The global interest and currency markets are in constant flux. An individual investor can of course not keep track of all these changes and the resulting need for daily professional reassessment.
This is where ERSTE FIXED INCOME PLUS comes in. The managers of this fund react to changes on the markets on a daily basis, by buying individual bonds as well as modular, themed funds. These may for example invest in floating-rate bank bonds, corporate bonds, high-yield bonds, emerging markets issues, and also euro government bonds.
The right mix and deliberate caps/thresholds
The right mix is crucial. There are also caps: unhedged foreign exchange cannot make up more than 25% of assets under management.
In the following, a summary of the performance of the various bond categories throughout the year:
The fund is available as distributing fund, where the returns are distributed annually to the investor, and as accumulating fund, which ploughs back and reinvests the returns.
No fear of price fluctuations anymore
ERSTE FIXED INCOME PLUS is highly suitable for a savings plan with monthly deposits. The ongoing adjustment often yields short-term effect for investors who regularly pay in fixed amounts, seize yield opportunities on the bond market on an ongoing basis, and thus earn a solid yield in the long run and build capital.
Of course, ERSTE FIXED INCOME PLUS is no fund for “a quick buck”. Fund managers recommend a holding period of at least six years.
For further information, please visit:
Please also have a look at the fund video:
Prognoses are no reliable indicator for future performance.