Which generation group best understands how to invest in bonds? According to a new study by BNY Mellon Investment Management, millennials have a slightly better grasp than older investors of the role fixed income plays in retirement planning and how the asset class responds to market cycles.
Asked by pollsters when average investors should consider adding fixed income to their investment portfolios, 36 percent of millennials said they did not know, compared with 45 percent of baby boomers. Not only that, just 32 percent of boomers reported having a fixed income allocation in their portfolio, versus 43 percent of millennials.
About 80 percent of boomers insisted that fixed income investing was intended only for retirement planning, compared with 70 percent of both millennials and Gen Xers who held this view. In addition, while 65 percent of millennials surveyed said all bonds provided the same level of risk, 76 percent of boomers believed the same thing.
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