As the stock market continues to power forward at a pace worthy of Usain Bolt, investors who, until now, have contented themselves with derisory levels of interest payable on cash deposits, are once again taking note of equities’ impressive recent performances.

The question is: will the rally continue and if it does, where should the investor start distributing his moolah?

Who would have thought that several former ‘dogs’ including British Land would suddenly attract the attention of a rich Middle East-based investment group, thus propelling the company’s share price into orbit?

And what has happened at Carphone Warehouse to send its share price soaring by 25 per cent in the space of a month?

Investors who believe this trend will continue should be careful. Share trading volumes remain thin, the effect of which is to amplify positive (or negative) price movement beyond the norm.

Moreover, pinpointing the next 25 per cent short-term rise in a specific share price is notoriously difficult, if not impossible, and investors who believe they are capable of doing so should contact me in strictest confidence without further delay. Or be mindful of Warren Buffett’s urgings to ‘get rich slowly’.

Most investors I know consider double-digit share price rises a rare bonus, especially if they occur over the course of a few months.

However, that is not to say they are overwhelmingly happy with the returns they receive on cash deposits, which possibly explains the continued interest in corporate bonds.

When the recession started, many banks and hedge funds offloaded these assets because they were saleable and the cash they generated enabled institutions to quickly repair their tarnished balance sheets.

The effect was to drive bond prices down and push yields upwards, a phenomenon ably assisted by the fear of possible corporate failure.

Today, yields in excess of six per cent are not uncommon, though the key to investing in corporate bonds is managing risk.

There is little point buying a bond yielding 12 per cent if the company issuing it is about to go under.

Most investors tend not to buy corporate bonds directly, but to invest in unit trusts, or investment trusts, the managers of which are paid to manage risk and to compensate investors with steady returns.

Those investors not requiring income can, of course, re-invest their dividends, many of which are paid out quarterly.

Furthermore, when some form of normality does return to stock markets, fund prices are likely to increase, offering the prospect of modest capital growth.

I looked at one fund recently, the M&G Strategic Corporate Bond, where this combination had already occurred, though it is still yielding almost five per cent.

What caught my eye was the noticeable change in the fund’s area of investment between February and April.

By the end of February, more than half of the fund was invested in the UK. Two months later, that total had grown to 94 per cent.

I would suggest this is what is known as ‘active management’; considering the fund is currently valued at £1.3bn.

Its managers have given UK plc an encouraging vote of confidence.

Wary investors may be inclined to think in similar terms of M&G’s impressively-performing strategic corporate bond fund.