Med-Term Investment Horizon Bond Funds Recommended List

Medium term investments are investments at attractive relative valuations with favorable outlook for next 6-12 months. The investment case for these needs to be reviewed on a monthly basis for next 6 month period. Hence more careful monitoring is required than strategic investments. Such investments are suitable for shorter term investment goals but may be used for longer term goals like retirement planning as well, with more careful monitoring.

Below list is pulled from the broader shortlist of funds.


For Balanced Investors: SPDR Nuveen Barclays New York Municipal Bond ETF , iShares USD Emerging Markets Corporate Bond UCITS ETF

For Aggressive Investors: iShares Emerging Markets High Yield Bond ETF , Loomis Sayles Institutional High Income Fund , Vanguard Long-Term Corporate Bond ETF


For Conservative Investors:

For Aggressive Investors:


For Aggressive Investors:



PERFORMANCE DATA medium term 2 apr 16


Leverage can enhance positive returns, while it can hurt more if investments post negative returns. Investors should take less leverage on more volatile investments like growth equities, convertible bonds and very long term bonds ; while safer investments like low volatility high dividend stocks and conventional bonds can be levered more as their price volatility is lower and hence risk of getting a margin call is lower.

We recommend Conservative Investors to not use any leverage.

For Balanced Investors maximum leverage of 1:1 is recommended [i.e. for every 1 dollar of equity, portfolio has 1 dollar of debt].

For Aggressive Investors maximum leverage of 2:1 is recommended [i.e. for every 1 dollar of equity, portfolio has 2 dollars of debt]

Below is an illustration of leverage effect on ROE (Return on Equity):

leverage effect.png