Investing in Bonds Funds in the current climate.

Having something in a bond fund is good for diversification but for me you already have too much in bonds considering the vangard fund you hold. In my case I'd want 80% at least in equities, but my investment priorities may be different to yours.

Some quick thoughts (that you might be able to follow up on if interested):-

1. Bond markets dwarf equity markets.
2. Bonds come in innumerable shapes and sizes eg whilst GE might have a handful of different equity classes, it could have hundreds, if not thousands, of different issued bonds.
3. As a result of 2. there's far less in the way of "passive" bond funds. There's no real "FTSE 100" for bonds*.
5. Also as a result of 2. there's far less transparency in the bond market, which makes for bigger spreads*.
6. A US Treasury fund is going to have a very different risk / return profile to a corporate bond fund, which in turn will be different to a high yield fund. What price local currency Turkish corporate debt these days?
7. I don't think you can talk simply in terms of a what will happen to bond funds in the event of a market correction / crash eg you might envisage a "flight to safety" (ie Treasuries go up), whilst corporate bonds might get hammered. In general though bonds should be less risky than equities (take that with a huge pinch of salt).
8. I think there might be some substance to your comment re them being less of an equities hedge than they were in the past.

To ptr120 's point yup, good for diversification, though it's hard to say whether you have too much in bonds at the moment (given your LifeStrategy 20 holdings) because we don't know how much of your overall portfolio that makes up, or your appetite for risk, or your time horizons etc etc etc.

I'm off to the pub, I'll ponder more .

* I think efforts are afoot to change this, but I am not sure how much progress has been made.  Even then it'll likely benefit institutions first...

You should work out your allocation across your entire holding. Most people got for around 70:30

Thanks hazellend , have done that, which is why I've been investing in Bonds Funds recently.

Thanks registerme , I do take it with a pinch of salt ("In general though bonds should be less risky than equities") but figure my previous 75% in Shares with around 25% Cash is too "Shares" risky for moi.

Thanks @bobo, I looked at PIBS yonks ago but don't like 'em for various reasons. 

Good comments, Thank You folks.    

Was 75% shares of the whole, now down of course with my buying LifeStrategy 20% Equity/80% Bonds.

Correct macq.

I'm not particularly bright at all this and just decided I needed some sort of "hedge" against my huge dependence/overweight in Shares, and I'm happy with set and forget Passive Bonds Funds, particularly the lower charges. 

I'm not looking for stock market type returns with my Bond Funds, just a "hedge" as I have said and I'm happy if I get 3%+