Is the Nikko ABF Singapore Bond Index a good buy now?

Generally, a bond's value has an inverse correlation with market interest rate.

When market interest rate increases, the value of your bond decrease. This is because an investor can simply buy a new bond that yields a higher rate of return as compared to the one that you own now.

When the market interest rate decreases, the value of your bond increases. This is because the yield from your bond is worth more than what other investors are able to get in the market now.

To determine if the market condition is favourable to invest, the question will be: Is there a right time to invest?

Accordingly, I have compiled a list of financial crisis and disasters since the 90s and every other strong reasons not to invest. However, the market has proven otherwise year after year.

Therefore, focus with the right investment strategy by knowing your investment objective. Then decide the tenure and decide whether to invest a lump sum or to do it via dollar cost averaging.

More Details:

Lump Sum vs Dollar Cost Averaging

Finally, invest into assets that suits your risk appetite.

I share quality content on estate planning and financial planning here.

If you think the next 12 to 24 months are going to be rocky for the world and singapore economy, then yes, bond funds are a good buy today.

if you think economy is going to be great, stocks are going to flourish, then bonds' returns would not be great...