Sentences with phrase «in individual bonds»

Bond funds have risks too, but you may be taking unintended or unnecessary risks by investing in individual bonds if you don't understand how these things work.

In comparison, bond mutual funds invest primarily in individual bonds.

You can make investments in individual bonds by selecting them yourself or you can invest in a bond fund involving professional investors.

To which my response is this — if you're willing to ignore short - term losses in individual bonds, why can't you ignore short - term losses in bond funds?

If I read correctly, you invest in individual bonds not mutual.

One of the biggest investments to bond funds is the relative liquidity it offers to investors compared to investments in individual bonds.

Second, rising rates can actually work to the benefit of investors in individual bonds by allowing them to purchase higher - yielding securities as their current holdings mature.

Investing in individual bonds carries more risk because they are not diversified.

This creates increased behavioral risk in bond funds because the volatility is more noticeable even though the same exact thing is happening in the individual bonds.

Personally I'm not interested in individual bonds — I'd rather buy an index fund or ETF that buys the types of bonds I want.

That can make investing in individual bonds preferable for people who need a specific amount of money at a specific time.

Then they tend to return to previous levels (whereas the price decline in an individual bond is locked in, and doesn't go away until maturity).

In comparison, bond mutual funds invest primarily in individual bonds.

What are the different factors and terms one should be acquainted with before investing in individual bonds?

It's just a form of mental accounting to assume that you'll be able to ignore short - term losses in individual bonds with the knowledge that the principle value will be there at maturity.

Investing in individual bonds does not shelter you from risk.

She plans to do so by investing 60 percent of her portfolio in stock funds and 40 percent in individual bonds at the start of retirement and moving to a 50 - 50 split in later years.

If you want to learn more check out these resources: Investing in Individual Bonds vs. Bond Funds Using I -LSB-...]

This downturn would have had no long - term impact on the retirement savings of someone in individual bonds (unless he or she had been forced to sell).

Mutual funds offer a good way to diversify bond holdings without having to invest $ 100,000 or more in individual bonds (there is a $ 5,000 minimum per bond not counting the discount).

Bond Funds Bond mutual funds invest primarily in individual bonds.

One is that in most cases these funds roll bonds over and so may be exposed to capital losses if rates rises whereas, as Terry correctly points out, a hold - to - maturity investor in an individual bond (that doesn't default) will ultimately receive back his principal, irrespective of mark - to - market losses in the meantime.

Learn about using bond ladders, barbells, and bullets to help diversify across maturity dates when investing in individual bonds.

Say you invest in an individual bond.

Lesson 11: Individual Bonds vs. Bond Funds — Don't assume that investing in individual bonds and bond funds is basically the same thing.

As individuals normally hold far fewer bonds in their portfolio than bond mutual funds, the chances that a default will result in a large loss for the investor are generally higher for those investing in individual bonds.

Isn't it better to invest in individual bonds, where if things go sour with the interest rate, you can hold them till maturity and recover your full principal?

You can either invest in individual bonds or you can invest in bonds through a bond fund or a bond mutual fund.

Consider your own liquidity needs before investing in individual bonds.

I don't know where the cut - off point is, where investing in individual bonds is better, but it is pretty high.

But for the average investor, investing in individual bonds is next to impossible.

For the vast majority of investors looking to invest in corporate bonds, mutual funds make more sense than investing in individual bonds.

Once you make the choice to invest in individual bonds, the question is: How do you buy them?

The main alternative to investing in individual bonds is through bond funds.

As a college investor, once you become familiar with how the financial market works, you can start to invest in individual bonds or stocks.

Bond Funds Bond mutual funds invest primarily in individual bonds.