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View Full Version : Bond indices (in particular TD e-series canadian bond index)



kindheartedguy
Jun 28th, 2012, 06:35 PM
I want to contribute some money into my RRSP for home buyer's plan in 2-4 years. Would putting the money in a bond index be relatively safe for that time frame?

What are the changes that the prices of the bond index going down? Judging from past performance, it just seems to be going up at a really slow pace...

https://www.tdassetmanagement.com/Content/Products/MutualFunds/Funds/p_FundCard.asp?GraphFlag=Y&CalculatorType=S&PID=10&FID=4817&TAB=PRICE&SI=4&#graph

excuse my ignorance

S5
Jun 28th, 2012, 07:22 PM
No. You should match the fund's duration to your time horizon. Better yet just get a GIC, they'll pay more than a bond fund with such short duration.

Bonds have been on a 20 year bull run fuelled by decreasing rates. Rates are unlikely to decrease from their current levels.