In order to develop a diversified investment portfolio, fixed interest, namely in the form of bonds normally fulfills the diversification requirement. For most industry linked or managed superannuation portfolios, you would expect to see around 10% of asset allocation in government bonds.

The bond market isn’t as straightforward as many think, the bond market is large though and whilst I have learned about the bond market, I do not have the access to the market to purchase bonds. The advantage of bonds as a regular investment income generally providing greater investor certainty than share dividends with repayment of the initial investment on maturity. This is a low risk strategy to seek capital preservation, this is an excellent investment during turbulent times.