The Fixed Income Fallacy

"My advisor picks the best bond funds. These portfolio managers can add alpha because bonds are less liquid than equities."
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91% of bank loan funds underperformed their index over the past 15 years, according to the SPIVA report.
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75% of national muni funds underperformed their index.
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In corporate bonds, you ALMOST had a coin flip chance out outperforming, as only 35-40% of portfolio managers were able to consistently beat their index over the last 15 years.
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These are not speculations or opinions, these are facts. To read them for yourself search for "SPIVA U.S. Scorecard year end 2023."

At Axis Capital we use diversified, low-cost, index funds, for our fixed income strategies. The money you save from not paying bond fund managers is then allowed to grow and compound over time.

Most bond funds don’t outperform their own benchmarks.