When you buy a bond you are buying a fixed income stream, but the price people are prepared to pay for that fixed income stream will change over time. So if rates start rising, the bonds you bought a year ago, would be worth less than a new bond that promises a higher income stream.

General Advice warning:
Pearl Funds Management, an authorised representative AFS Rep No 001254808 of Banyan Securities Pty Ltd AFSL 484139
The information presented by us is general in nature and does not take into account your personal goals and objectives. It does not represent financial product advice. You should always seek independent legal and financial advice before making a decision in relation to a financial product. Read the Product Disclosure Statement (PDS) before making a decision. You should consider your own circumstances, needs and financial objectives before making a decision.

Kirstie Spicer
13 January 2015