Optimal Fund for Rising Interest Rates

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mjdaniel
Posts: 111
Joined: Sat Jan 21, 2012 2:20 pm
Location: Temecula, CA

Optimal Fund for Rising Interest Rates

Post by mjdaniel » Sat Aug 29, 2015 3:52 pm

A little background, then the question. I agree with the advice on this forum, especially regarding future rising interest rates, which is set the asset allocation you are comfortable with and stick with it. My current comfort zone is a 60/40 Bond/Stock allocation and I have my funds in Lifestrategy Conservative or Wellesley Income fund. I prefer a single fund for simplicity, but if I have to, I don't have a problem with using multiple funds and rebalancing. We all know that eventually interest rates are going to rise, and we all know we don't know when. Based on my requirements, is there a best fund that would ride the rise then benefit after they level off. So far I am thinking that when index funds are involved, you have to take what you get and the ride could be rough. With a managed fund, you have the advantage that the fund managers can work their magic (or not) to get thru the storm. I would appreciate some thoughts on this. If there was not an interest rate issue, I would stay where I am at and I still may do that.

John3754
Posts: 1289
Joined: Tue Mar 19, 2013 8:56 pm

Re: Optimal Fund for Rising Interest Rates

Post by John3754 » Sat Aug 29, 2015 3:57 pm

Have you considered CDs?

mjdaniel
Posts: 111
Joined: Sat Jan 21, 2012 2:20 pm
Location: Temecula, CA

Re: Optimal Fund for Rising Interest Rates

Post by mjdaniel » Sat Aug 29, 2015 4:01 pm

I get enough growth with 60/40 that CD's have never been a thought. Also, I am looking for growth over safety, with a sideorder of stability.

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