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Should fixed-interest investments be part of your ASX share portfolio? – Motley Fool Australia
Should bonds or fixed-interest investments be part of your ASX share portfolio in 2020? Here we look at bonds as well as fixed-interest ETFs.
Should fixed-interest investments be a part of your ASX share portfolio in 2020?
A fixed-interest investment normally refers to bonds. These are an asset class entirely different from the S&P/ASX 200 Index (ASX: XJO) shares like Woolworths Group Ltd(ASX: WOW) or CSL Limited(ASX: CSL) that ASX investors would be used to. A bond is essentially a loan. When you buy a bond, you are in effect loaning the issuer money at both an agreed interest rate and a set repayment date (hence the term ‘fixed…
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