Finance & Fury Podcast

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; What are Bonds, why do they exist, and how do they work? Price, ‘Face Value’ and coupon rate Buying and selling bonds The effects of interest rates on the value of bonds Bond managers – Managed funds or ETFs The role of Bond Managers Costs compared to ret