Should property bonds form part of my portfolio?

If you’re an experienced (sophisticated or high-net-worth) investor with suitable knowledge looking for an investment that has the potential to offer better returns than mainstream products, it’s worth considering the addition of property bonds into your portfolio.

 

Should property bonds form part of my portfolio?

If you’re an experienced (sophisticated or high-net-worth) investor with suitable knowledge looking for an investment that has the potential to offer better returns than mainstream products, it’s worth considering the addition of property bonds into your portfolio.

The fact that property bonds generally pay a stated income at fixed intervals can give portfolios a valuable element of certainty, and if your portfolio contains a number of bonds paying at different times, this has the potential to provide a fairly constant income stream. It’s important to remember though that property bonds are an investment product, so your capital is at risk and returns are not guaranteed. 

Property bonds can also be effective in balancing more volatile investments - such as stocks and shares - in a diversified portfolio. 

Ultimately, it’s only you - and preferably, an independent financial advisor - who can decide whether a property bond is a good fit for your portfolio. Your risk profile - including your investment goals, circumstances, knowledge and experience - are one of the most important considerations, and you should always make sure you’re basing your investment decisions around this.