• The IMF expects the economy of the United States to stop.
• The forecasts for Western Europe and Japan is not great.
• Inflation in developed countries and emerging markets increased.
• Oil prices have doubled in the last six months.
• There is the possibility of deepening the economic downturn.
• The stock markets of most countries have declined in recent times.
These statements are not new to readers ofThe newspapers, especially the financial newspapers. All were affected by the consequences of these assertions. In difficult times like these, not where your money? Stock - No, it would be suicide! Banks - the return is too low. Yes, where?
One of the possible locations are mutual funds. They are much safer than stocks and to obtain better returns than banks. But we must be careful when choosing an investment fund in recessionTimes. It is always a better choice for investing in bonds during the recession. What are the interest payments and property income is guaranteed to be possible if the increases in the prices of bonds. The bond mutual funds allow you to get exactly, dass
As the name suggests, these funds invest in bonds and debt instruments. The goal is to protect the investment, while ensuring a steady income from interest payments. Like any investment, have a net asset value(NAV) is the value of each share of investment funds. This is not something that you must pay some money or what you get when you sell a share.
5 reasons for investing in bonds, mutual funds:
1. They are far less risky than shares
2. It provides stability
3. They are different - the portfolio is determined by various links, which will be the risk of failure, and to ensure regular payments.
4. Some of themare exempt from federal and / or the tax authorities of the
5. They are more liquid than bonds.
Some of these benefits is the second most important. For this reason, you need to buy bond funds instead of individual securities. They are easily bought and sold in small units. On the other hand is not so easy to buy stocks and hold them. The bonds are not liquid as bond funds. Therefore, it is better to buy a pension fund, instead ofObligations.
TYPES OF BOND FUNDS
There are many different ways. The funds, including some of the most important are the government (federal or bonds), municipalities, companies, etc.
Government Bond Funds
They invest in debt securities issued by the government, such as treasury bills, bonds, securities, bonds, securities, mortgage-backed securities issued by public agencies, etc. Some are even exempt from state and / or localTaxes.
Municipal Bond Funds
Investing in securities of state or local public works like bridges issued, roads, school construction, bringing the state, etc. Some are even exempt from federal taxes. Because the support of the federal government, is considered a high score.
Corporate Bond Fund
Investing in corporate bonds. NoTo assist a government little more risky than the other two types. However, pay much higher profits than public funds.
In addition to these funds, there are many others such as "zero-coupon bond funds - the only zero coupon bonds, the funds 'international' - those that invest in international bonds, convertible securities funds - which, in investments in securities, investment convertible (bonds that can be converted intoActions), etc.