Polwitoon, Sirapat; Tawatnuntachai, Oranee - In: Journal of applied finance & banking 3 (2013) 1, pp. 67-92
Although bonds are less volatile than equities and the median bond fund holds about 200 bonds, bond investors still … need to hold more than one bond fund to realize the optimal benefit of diversification. The simulation results show that … three to five bond funds reduce standard deviation of terminal wealth by 50% and about 100 funds reduce the standard …