asi12:

Sooner or later high inflation will lead to high interest rates every where including EM. El-Erain suggests having some EM bonds too. Over the long term this would be  good investment stratagy but would it not hurt bond returns near term if one invest now in bond funds? I am shying away investing in bond funds but on the other hand I am more open to invest in individual bond and to be held until maturity.

 

 Asi12, in the past I tried to "time" the bond markets and ended up with very poor results.  I purchased CDs thinking rates were going up, and while they did so, my CDs returned less than simply holding my bond funds.  I would strongly recommend just holding a good actively managed bond fund and leaving the positioning to the experts.  They are well aware of the potential problems, just as you are. 

If you want a more wide ranging bond fund you might consider something from Loomis Sayles, or El-Erian's new fund when it launches.