Bond Investing Strategies: Building a Fixed-Income Portfolio
When creating a bond portfolio, it pays to think strategically. Look to diversify by both maturity and issuer. Consider bond laddering and similar techniques. And decide if you're seeking income, safety, growth or something else from your fixed-income investments.
What Is the Safest Investment? Treasuries Pose Little Risk; Offer Smal
If you're primary goal in investing is to not lose money, consider buying U.S. government debt. Treasuries are backed by the "the full faith and credit" of the federal government. But don't be misled. There are risks in all investments -- even in treasuries.
If you're primary goal in investing is to not lose money, consider buying U.S. government debt. Treasuries are backed by the "the full faith and credit" of the federal government. But don't be misled. There are risks in all investments -- even in treasuries.
When Should I Buy a Money Market Fund?
Money market funds are a popular and safe place for investors to keep cash for the short term. These investment vehicles offer both security and liquidity. But the relatively poor returns offered by this class of mutual funds make them ill-suited for long-term investment.
Money market funds are a popular and safe place for investors to keep cash for the short term. These investment vehicles offer both security and liquidity. But the relatively poor returns offered by this class of mutual funds make them ill-suited for long-term investment.
Why Buy a Zero-Coupon Bond or Strip?
Zero-coupon bonds and "strips" are bought at a discount to face value. Interest is compounded annually, but isn't paid until the bond matures. There are advantages (safety) and disadvantages (inflation risk) to adding them to your portfolio.
Zero-coupon bonds and "strips" are bought at a discount to face value. Interest is compounded annually, but isn't paid until the bond matures. There are advantages (safety) and disadvantages (inflation risk) to adding them to your portfolio.
Should You Invest in a Unit-Investment Trust?
A "unit investment trust" is made up of a collection of bonds, just like a bond mutual fund. But a UIT holds the investments in the trust until maturity. Fees are low compared with mutual funds. But you'll likely pay a brokerage fee to buy a UIT of up to 3.
A "unit investment trust" is made up of a collection of bonds, just like a bond mutual fund. But a UIT holds the investments in the trust until maturity. Fees are low compared with mutual funds. But you'll likely pay a brokerage fee to buy a UIT of up to 3.
Before You Buy a Bond Mutual Fund
Bonds are among the safest investments available. And as a general rule, mutual funds are the safest way to invest in bonds. But that doesn't mean you should jump right in. Here are a few items to consider before you buy a bond fund.
Bonds are among the safest investments available. And as a general rule, mutual funds are the safest way to invest in bonds. But that doesn't mean you should jump right in. Here are a few items to consider before you buy a bond fund.
Understanding Bond Credit Ratings: From AAA to Junk
A bond is a loan. So the first question to ask before you buy a bond is the same question you'd ask before you agreed to lend money to your brother-in-law: "Will I get my money back?" In bonds, there's an entire industry dedicated to answering that question. Welcome to the world of Wall Street's credit rating agencies.
A bond is a loan. So the first question to ask before you buy a bond is the same question you'd ask before you agreed to lend money to your brother-in-law: "Will I get my money back?" In bonds, there's an entire industry dedicated to answering that question. Welcome to the world of Wall Street's credit rating agencies.