How To Pick a Good Bond Fund

摘要

For the novice investor, picking a new bond fund entails a daunting search through hidden costs, skimpy disclosure and otherworldly jargon, all for the right to plunk down money for a small payoff that can fall far short of stocks. This pursuit is that much more perilous as an era of low interest rates ends, pushing prices down and hurting bond portfolios. But bond beginners must summon the courage to proceed, for keeping a well-balanced investment lineup requires that they understand and own bond funds. Bonds can offer a steadying hand to a portfolio (provided interest rates aren't going haywire). Bonds check, and sometimes counteract, the stock market's volatile ups and downs. When stocks suffer, it can be comforting to turn to your bond stash and see it slowly, steadily gaining. As a bulwark to preserve capital, bonds can give you peace of mind to take on greater risks with other investments.