Fixed income. Not fixed thinking.

 

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BNY Mellon Investment Management fixed income survey 2019: The results are in…

BNY Mellon Investment Management commissioned a national research study of more than 2,000 Americans to gain a better understanding of their knowledge, attitudes and behaviors regarding fixed income.

Did our findings support the common myths surrounding the asset class?

Use the interactive wheel below to discover respondents’ true opinions on fixed income.

Myth 1

I don't need fixed income

Nearly half of all investors polled (42%) have no exposure to fixed income investments.
Reveal the Truth

Myth 2

Fixed income is only intended for retirement planning

77% of investors do not see a role for fixed income in their investment portfolios when retirement is more than 10 years away.
Reveal the Truth

Myth 3

The best way to access fixed income is through individual bonds

50% of respondents believe the best way to maximize the value of fixed income in their investment portfolio is to own individual bonds.
Reveal the Truth

Myth 4

Equities require more knowledge and skill than fixed income

67% of respondents believe investing in equities requires more skill than fixed income investing.
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Myth 5

Domestic bonds are always best

59% of US-based investors believe the US market
provides the best return potential for bond investors
versus other countries.
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Myth 6

Municipal bonds are only for the wealthy

44% of investors believe that municipal bonds are primarily intended for the wealthy.
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Myth 7

Rising interest rates are always
bad for bondholders

From the survey, there was no definitive opinion from investors on this. Almost half (45%) of investors believe rising rates can be positive or negative depending on the bonds, while 31% of investors selected “I don’t know”. 14% believe they are always positive for bond holders, and 10% believe they are always negative for bond holders.
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Myth 8

Bonds must be held to maturity

43% of investors believe bonds must always
be held until maturity.
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Myth 9

Fixed income is always less liquid than equities

61% of investors believe fixed income securities
are less liquid than equities.
Reveal the Truth

Myth 10

All bonds are created equal

70% of investors correctly identified all bonds do not provide the same level of risk, while nearly nine out of
10 (87%) recognized all bonds do not provide the same
level of income.
Reveal the Truth

Myth 1

They don’t need fixed income
 

See the Data

Myth 2

Fixed income is only intended
for retirement planning

See the Data

Myth 3

The best way to access fixed income is through individual bonds

See the Data

Myth 4

Equities require more knowledge
and skill than fixed income

See the Data

Myth 5

Domestic bonds are always best
 

See the Data

Myth 6

Municipal bonds are only
for the wealthy

See the Data

Myth 7

Rising interest rates are always
bad for bondholders

See the Data

Myth 8

Bonds must be held to maturity
 

See the Data

Myth 9

Fixed income is always less
liquid than equities

See the Data

Myth 10

All bonds are created equal
 

See the Data

 

Engine CARAVAN Surveys conducted the “Fixed income. Not fixed thinking” survey of Americans on behalf of BNY Mellon Investment Management. 

Download survey results

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a fund, contact your financial advisor or visit im.bnymellon.com. Read the prospectus carefully before investing.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

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