What Are the Best Bond Funds For 2010 & Beyond?
These days I get that question a lot – what is the best bond fund for 2010? After the stock market volatility of 2008-09 people have realized that a portfolio needs to comprise of stocks and bonds. In this article, we will discuss how bonds work and how to go about picking the best bond fund. What are bonds? They are a form of loan, made to a company. The owners of the loan are called bondholders. Each bond is issued with a fixed face value, has a coupon rate associated with it and a date of maturity. The amount an investor pays to buy the bond is called the face value. This payment entitles the bondholder to receive interest payments at fixed intervals (usually every six months). On the date of maturity (which is known in advance), the principal (or the initial payment made) is paid back completely. Bonds have been an ideal choice for investors looking to get a higher return than they would get from CDs, US treasuries etc. Investing in individual bonds is a little more involved and re
