Pay attention to the small print with bond funds

If you must invest in a bond fund, then it's vital you do your research, says Tim Bennett - because the yield may not be all that it seems.

Fixed-income funds funds that invest in bonds, mainly have been the hottest investment sector by far this year. According to the Investment Management Association (IMA), fixed income was the best-selling asset class for the 12th month running in August.

By comparison, equity funds saw a net outflow (in other words, more investors cashed in their stocks than bought more) of £604m, the worst figure since November 2011.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.