Fixed rate investment bonds

Imnoexpert_2

While I am progressing well (?) investing in a range of funds across a various sectors I am still hung up over bonds.

My asset allocation suggests maybe 25-30% in fixed interest. However now doesn't seem the time to do this. On the other hand the money I plan to invest is currently in the building society earning 2.5-3% pa so in a way it already 'safe' (yes I know its losing value because of inflation).

Should I stay as I am for a while? Should I buy into a range of bond funds? Should I buy some bonds direct (and plan to hold them through to maturity if necessary)?

Any thoughts really appreciated.

dunstonh

I think you have a terminology issue here.

Investment bonds are a tax wrapper using life assurance funds. Not a investment fund itself. It is a tax wrapper in the same way an S&S ISA or pension is a tax wrapper.

Fixed rate would suggest a fixed term deposit. However, your post suggests you may be considering fixed interest securities but it could also mean corporate bonds (either funds or direct).

Can you clarify please?

Imnoexpert_2

Sorry for the confusion.

I mean fixed interest investments as part of a portfolio of investments. I currently have the dosh in the Building Society and the alternatives seem to be

buying unit trusts which invest in the various sectors

Sterling Corporate BondSterling High Yield BondsSterling Strategic Bond
Global Bonds
UK GiltUK Index - Linked GiltsUK Equity & Bond Income
Buying these guilts or bonds directly

Putting the money in a building society 2 or 3 year fix.

Looking for a defensive managed type fund that might fulfil a similar brief.

I can afford to put it away for 5 years

Thanks for any help