b) Because
bond values fluctuate, you may take a loss if you need the money before they mature.
Let's learn how
bond values fluctuate by working through an example.
Important Risks of Investing in The BlackRock Global Allocation Fund: Stock and
bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Stock and
bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Bond values fluctuate, so the value of your investment can go up or down depending on market conditions.
Not exact matches
In theory, you could hold an individual
bond to maturity and never lose any money even though the market
value of the
bond may
fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).
Yields and market
values will
fluctuate, and if sold prior to maturity,
bonds may be worth more or less than the original investment.
Unlike stocks whose
values fluctuate from time to time, the returns on your
bonds are almost always guaranteed and predictable.
The market
value of these
bonds fluctuates, too, but you don't see it.
A portfolio that has some portion of
bonds versus all stocks is going to
fluctuate less in
value.
The prices of
bonds can
fluctuate, and an investor may lose principal
value if the investment is sold prior to maturity.
Short - term
bonds typically do not
fluctuate widely in price but the fact remains that unlike a savings account, a short - term
bond can decline in
value.
These risks include interest rate risk, which may cause the underlying
value of the
bond to
fluctuate.
Fixed income is considered to be more conservative, because
bonds tend to pay a steady stream of income,
fluctuate less in
value and typically return an investors» money at a predetermined date.
Therefore,
bonds fluctuate in price, selling at a premium (above) or discount (below) to its face
value (par
value).
The present
value of the
bond will
fluctuate widely with changes in prevailing interest rates since there are no regular interest payments to stabilize the
value.
Though they are typically considered «safe» investments,
bond values can
fluctuate just like stocks, though typically with less volatility.
The
value of your
bond will most likely be different, since the market is constantly
fluctuating.
The only exception is if the
bond invests only in I and EE government
bonds — these
bonds aren't sold on secondary market, so their
value doesn't
fluctuate.
While
bonds come with a promise to repay you the principal at the time of maturity, the
value of the
bond between now and maturity can
fluctuate.
Securities, even
bonds,
fluctuate in
value and pose a risk to the principal investment.
Bond funds tantalize you with suggestions of still - higher yields, although in their small print they remind you that «the
value of your shares will
fluctuate.»
As with the maturity date, the longer the duration, the greater the risk of the
bond fluctuating in
value.
The return and principal
value of
bonds fluctuate with market conditions and when sold,
bonds may be worth more or less than their original cost.
If you buy a 20 year
bond, you can be guaranteed its
value in the secondary market will
fluctuate regardless of the financial health of the company.
The return and principal
value of
bonds fluctuate with changes in market conditions.
The fact is, individual
bonds have market
values that
fluctuate with market conditions too, but it takes some effort to translate that into a yield figure at given moment, so it's easy to tune it out and forget it exists.
It is true that
bond funds
fluctuate in
value but unless you need money maturing at a certain point in the future,
bond funds are an acceptable alternative to owning
bonds directly in long - term portfolios.
But there is
value in not having to watch your holdings
fluctuate like
bond mutual funds or ETFs do.
In active
bond investing strategy, investors predict the future of the
bonds that they are investing in and expect the
value of the
bonds to
fluctuate as per their predictions.
A swap into shorter - maturity
bonds will cause a portfolio to
fluctuate less in
value, but may also result in a lower yield.
Investments in stocks and
bonds are subject to risk of economic, political, and issuer - specific events that cause the
value of these securities to
fluctuate.
If you are considering buying a
bond, remember that the market
value of a
bond is at risk when interest rates
fluctuate.
Because
bonds can be traded before they mature, causing their market
value to
fluctuate, the current yield (often referred to simply as the yield) will usually diverge from the
bond's coupon or nominal yield.
Unlike stock
value, which
fluctuates with the market, you will always receive the face
value or «par
value» of your
bond once it has matured.
STOCKS
FLUCTUATE MORE IN
VALUE than
bonds, so you can calm down a stock portfolio by adding a small position in
bonds.
Bonds can be traded on the open market and their principal
value can
fluctuate in large part due to changes in the interest rate environment or in the financial stability of the issuer.
The
values of junk
bonds fluctuate more than those of high quality
bonds and can decline significantly over short time periods.
Like any ETF,
bond ETFs
fluctuate or change
value in price over time, so these are more risky than buying the
bond itself.
Bond values can
fluctuate based on factors such as interest rate changes and the risk that the company or government may not repay its debts.
Bonds funds can
fluctuate in
value, but they are nowhere near as volatile as equities, so they're like adding cool water to a hot bath to make it more comfortable.
As the account owner, you have the right to invest these
bonds and other stocks in the market, but keep in mind that this causes your cash
value investment to
fluctuate.
It takes a long time for the
bond to mature because the savings
bond value is determined by interest rates that
fluctuate over time.
Except for money market funds, in which the
value of shares remains constant, the price of mutual fund shares
fluctuates, just like the price of individual stocks and
bonds.
The return and principal
value of
bonds and
bond fund shares
fluctuate with changes in market conditions.
The return and principal
value of
bonds and mutual fund shares
fluctuate with changes in market conditions.
5
Bond Funds - Investors should be aware that the fund's yield and the
value of its portfolio
fluctuate and can be affected by changes in interest rates, general market conditions and other political, social and economic developments.
The reason why this is important is because
bonds in mutual funds are traded on the secondary market and will
fluctuate in
value based on current market interest rates.
A
bond's price in the secondary market
fluctuates daily around its face
value to reflect changes in market interest rates.
Municipal
Bond Risk (Municipal
Bond Fund only): The
value of municipal
bonds that depend on a specific revenue source or general revenue source to fund their payment obligations may
fluctuate as a result of changes in the cash flows generated by the revenue source (s) or changes in the priority of the municipal obligation to receive the cash flows generated by the revenue source (s).