Fixed Income Part Three - Bond Fund Investment
A rising tide lifts all boats is an adage that is often applied to investment performance. It is particularly true in the relationship between bonds and bond mutual funds. Over the most recent period of declining interest rates, investors in both products achieved consistent income and rising principal values. But as the prospects for rising interest rates grows, it is valuable to understand some key differences between holding individual issues of bonds versus owning fractional shares of a bond mutual fund.