Welcome to Finance & Fury, the ‘Say What Wednesday’ edition. This week’s question comes from Gab;
“Hi Louis, I was looking at different asset classes and how someone could get exposure to them (outside superannuation) and got stuck on "fixed income". If I understand this asset class correctly, if you hold to maturity you get all the capital back. But if you buy ETFs or managed funds you lose this benefit (as you basically just get exposure to the secondary market). Also, I thought the fees were ridiculous, especially with active managers charging 0.5%, when the long-term return is 5-6%. What are your thoughts on this? Thanks, Gab (keep up the good work!)"
Hi Gab, Great question!
Today we’ll focus on explaining Fixed Interest in straightforward terms;
If you have a question, or want us to cover something else in more depth, let us know at the contact page https://financeandfury.com.au/contact/.
Thanks again for listening guys. Until next time!