Has The Time Passed For Municipal Bond Funds?
- Topics:
- Commercial Lending
- Tags:
- Bond,
- Bond Fund,
- Finance,
- Investment,
- Municipal Bond
- Source:
- Financial Planning Association
FREE Registration is required
Overview: The question this article tries to address is do municipal bond funds still have a place in today’s portfolios? After closely examining yield and bond fund expenses, along with other factors such as diversification, it is concluded that many investors would do better with individual issues. A well-run bond fund could outperform a smaller, individually held bond portfolio by its efficiency. A fund could (1) create value with its management and its group purchasing efficiency and (2) have its costs dwarfed by the sky-high yield environment. In markets where the risks are greater, one sees a fund making some sense. The high yield bond market, where credit risk requires diversification, is such an example. Otherwise, there are too many investors paying too much for too little.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Aug 2000 | Pages: 1
People who downloaded this item also downloaded
 |
Reporting Requirements for Mortgage, Insurance and Investment Firms, and Audit Requirements for Insurance Intermediaries |
|
Bond Funds |
