Invesco Perpetual Income fund

pqrdef

A_Flock_Of_Sheep wrote: »

Right. Am I bleating up the wrong tree here but does having Gilts/Bonds in a portfolio with Equities act as a gap plug when there is a big drop in equity prices? Softening the blow?

Depends what's causing the movement. Bad news for profits will make fixed-income look better, whereas in a booming economy the lack of growth prospects will make bonds unattractive.

On the other hand, monetary policy tends to move equities and bonds the same way together.

The cause of the crash depends on the cause of the boom, which is different every time. Where we are now is nothing like the dotcom fiasco.

MoneyWeek keeps telling us what rising interest rates will do to bonds, when they come, but the effect on business prospects could be so bad that equities will do even worse.

What do you think will come first? (a) green shoots (b) even looser monetary policy (c) the markets turn against gilts and sterling.

grizzly1911

pqrdef wrote: »

It's 9.6% pa. At 12% you'd have £176.

I accept that point it is all relative. Probably less as it wasn't invested in one lump either.

oldfella

I have had mine since 2004, showing an annual return of 10.3%