The Role of Bond Funds in Your PortfolioUser Rating: / 0

PoorBest FinanceWritten by Yulian Isakov Monday, 07 March 2011 14:33

Bonds are very popular securities because they regularly pay interest income and pay back the initial principal after the bond
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What is a Bond?

A bond is simply a loan between an investor and the
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Since bond markets
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There are many kinds of bonds available each having varying risks, benefits, tax implications to an investor’s overall portfolio. Most bonds can be generally organized under four major categories: corporate, government, government agency,
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Bond Mutual Funds

Many investors want the benefit of diversification to
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Like stocks and
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However, bond holders can avoid running the risk of fluctuating interest rates and market
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Types of
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Bond funds also come in many
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On the other spectrum, corporate bond funds aim to invest in a variety of corporate issued bonds with different credit risks.
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Municipal bond funds invest
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Reduce Risk When Investing in Bonds

1. Try to match your bond maturities to your investment time frame. For instance, if you are retired and you need to withdraw from your portfolio each yeah to meet your day to day expenses, buy bonds or bond
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2. Long term
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3. Buy bonds or bond funds with
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Choose the Fund
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Although every bond fund carries its own risks, you should always
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Isakov Planning Group financial advisors bring
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