The convertibles look ok, but keep in mind that if you were to put all your $$ into that company you would move into the very high risk profile. If the company went under you could potentially loose the lot. The higher expected return implies a higher risk. Diversification - the big benifit of managed funds is the key to managing risk. If you put it all in a high paying interest account ie 4.5%, keep in mind that depending upon your marginal tax rate, you could loose half the return paying tax. Good luck
