Funds: Investors urged to avoid bonds

Paul Smith, a retired attorney in Virginia, lost 30 per cent of his US$401,000 retirement savings during the financial crisis.

He shifted to bond funds from stocks and now holds at least 60 per cent of his savings in fixed income. While payouts from some of the bond funds barely keep up with inflation, Smith says he's worried about another decline in stocks.

"My wife and I are very risk averse," the 64-year-old says. "Frankly, the volatility in the market is a concern to us."

via Business feed http://www.scmp.com/business/money/markets-investing/article/1059606/funds-investors-urged-avoid-bonds