My pension fund with Irish Life (work provided) is invested in a bond fund (60%) and various equity funds for the rest. While the equity funds recovered in the last year, the bond fund has lost 20pc of its value in the last 18 months or so (my pension fund is now worth a little less than the contributions). I'm 25 years off maturity so I'm aware that I should be mainly in equities.
I understand the correlation between rising interest rates and bond values. Given that the big hit has been taken, should I wait a while and see if there is a downturn in equities and also monitor the interest rate news, being prepared to move some funds at least out of the bond fund if interest rates go higher. There is much talk of recession in 2024.
Also, if interest rates just stay high for the medium term, what is likely to happy to bond funds in this scenario - do they just stay low or are they likely to recover at all?
What questions should I be asking about the bond fund details (i believe it's a mixture of corporate and govt bonds)? I'm aware no-one has a crystal ball, I'd just like to get some insight into this.
I understand the correlation between rising interest rates and bond values. Given that the big hit has been taken, should I wait a while and see if there is a downturn in equities and also monitor the interest rate news, being prepared to move some funds at least out of the bond fund if interest rates go higher. There is much talk of recession in 2024.
Also, if interest rates just stay high for the medium term, what is likely to happy to bond funds in this scenario - do they just stay low or are they likely to recover at all?
What questions should I be asking about the bond fund details (i believe it's a mixture of corporate and govt bonds)? I'm aware no-one has a crystal ball, I'd just like to get some insight into this.