One of the key ways that
bond fund investors reduce the returns they get on their bond funds is from paying more in taxes than necessary.
Other institutions may not eschew returns as overtly, but bond market participants such as pension funds and reserve managers do also look to the bond markets with a different angle than
traditional bond fund investors.
From mid-May through June month end,
retail bond fund investors pulled just shy of $ 70 billion out of bond funds — a record outflow.
From mid-May through June month end, retail
bond fund investors pulled just shy of $ 70 billion out of bond funds — a record outflow.
Bond fund investors who seek to beat inflation over time can achieve their goals by using a mix of strategies and focusing on a few specific sectors, such as high - yield or foreign bonds.
Bond fund investors in the top tax brackets will often get a higher yield from funds that purchase muni offerings that pay tax - free interest.
Other institutions may not eschew returns as overtly, but bond market participants such as pension funds and reserve managers do also look to the bond markets with a different angle than
traditional bond fund investors.
If you are
a bond fund investor, you should pay special attention to the investment grades that your fund is invested in.
Interestingly, DALBAR also found that balanced fund investors held their funds significantly longer than both equity and
bond fund investors.