If KFL fails then the NZ market has failed.
And don't you have to pay tax on the capital gain on the bonds.
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Underline reason of KFL underperforming NZX50G recently is its portfolio is biased towards blue chip GROWTH stocks ...which do take bigger hit when rates rises and vice versa perform better when rates fall . U have just seen one side of the coin ie rates rising part and made your conclusion ...
Now future it will show u what happens to it when rates fall ...which u will see while invested in the safety of bonds and term deposits . Your call mate !!
It seems like your both betting on the same horse.
KFL is heavely weighted in Ift, Mft and Fph.
Mft is under pressure, Fph probably the same.
So sell the lot and buy ift?
Cherry pick the stocks that you like out of their portfolio.
Not hard to replicate some/all of their portfolio, with similar weightings.