What Are The Risks And Rewards Of Closed-End Bond Funds?
- Topics:
- Investment Strategy
- Tags:
- Benefits,
- Personal Finance,
- Mutual Funds,
- Mutual Fund,
- Investment,
- Human Resources,
- Fund,
- Fixed Income,
- Financial Services,
- Finance,
- ...
- Source:
- Charles Schwab
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Overview: Recent turmoil in the credit markets has brought attention to closed-end bond funds, a less well-known relative to more common open-end mutual funds. Unlike open-end funds, closed-end funds take in a certain amount of cash when they're created and then trade like stock on a major exchange. Many have been beaten down in price - some even worse than regular mutual funds - creating some risks, but also opportunities, for investors seeking to add some kick to their fixed income portfolios. Other types of closed-end funds include dividend-paying stock funds, preferred stock, hard assets, and Rreal Estate Investment Trusts (REITs), though bond funds make up more than 70% of the current market. Regardless, the same principles apply.
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Format: HTML | Date: Feb 2009 | Pages: 6




