Sentences with phrase «risk than my bond funds»

By diversifying into CDs, at least part of my money is earning a much higher interest rate than my money market funds, and is subject to less risk than my bond funds.

nce a bond fund is similar to a rolling bond ladder, a good direct CD generally has lower term risk than a bond fund.

Not exact matches

«For example, a bond fund may borrow and take on leverage in order to show a higher return but has significantly higher risk than a retiree may want in an income portfolio.»

While core funds are more at risk than shorter - dated bonds, «a core bond fund can still play a very constructive role in a diversified portfolio,» says Toms.

For most investors it probably doesn't make sense to invest any further out than intermediate bonds or bond funds (10 year maximum maturity) to lower the risk of large losses.

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

Investors typically own short - term bond funds as a low - risk vehicle to preserve their principal, so losses in this segment tend to be more upsetting than a downturn in investments such as stock funds where volatility can be expected.

Yes the Index - linked fund is more susceptible to interest rate risk than the regular bond fund, but not by the nature of it being a linker, it's because the average duration is longer.

Income potential is higher than U.S. and developed nation bond funds, given the additional risks and longer durations.

What top hedge funds have been buying [Hedge Fund Wisdom] Free e-book on Texas HoldEm Investing [Texas Hold Em Investing] Latest letter from Greenstone Value Opportunity Fund [Distressed Debt Investing] Citigroup (C) offers attractive risk - reward [Greg Speicher] Video: How Berkowitz got comfortable with Citi [Morningstar] Summary of a recent talk with SAC Capital's Steven Cohen [Dealbook] How Stevie Cohen changed my life [James Altucher] Hedge funds buying more municipal bonds [CNBC] Sum of the parts valuation of Yahoo (YHOO)[Minyanville] Buffett says pricing power more important than good management [Bloomberg] Passport Capital sees oil prices holding up [WSJ] Bank loan funds drawing interest [InvestmentNews] For more great links, scroll through this linkfest [AbnormalReturns]

Considered to be a higher risk for loss than any other type of investments such as bond funds or money market funds they also have the potential to return the highest potential return in investment.

But when you are dealing with bond funds, which are a lot less volatile than stock funds, what is the risk?

Fidelity ® Conservative Income Municipal Bond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fuBond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fuFund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fufund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fubond funds.

The firm takes a bit more interest rate risk than other short term municipal bond funds and a bit less credit risk a strategy which has contributed to its long term outperformance.

The fund may invest in asset - backed («ABS») and mortgage - backed securities («MBS») which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds.

Better to create a mix of low - cost stock and bond index funds that jibes with your tolerance for risk and allows you to fully participate in the financial markets» long - term gains than to opt for an investment that severely limits your upside in return for providing more protection from periodic setbacks than you really need.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

That just means that that bond fund has a lot more risk than the one that was up 2 % because it's a note it's a loan.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

Bond funds primarily address credit and liquidity risk as they diversify more than an individual could.

@DJClayworth - If the horizon for the car fund is a couple years out, and the risk of inflation is scarier than the risk of loss of principal, some of the ultrashort bond funds may make sense.

In the current low - rate environment, an Ally 5 year CD has a much better risk / return profile than a high - quality bond mutual fund.

That strategy, which later came to be known as a «glidepath,» emphasized stock funds for younger participants and gradually shifted more of the portfolio into bond funds to reduce risk in later years, as preservation gradually becomes more important than growth.

The Ally 5 year CD gives you a guaranteed rate of return in the range of an intermediate - term bond fund, with much less risk than a short - term bond fund.

A: It's important to note that the Wellesley and investment - grade bond fund were recommended for investors who want to take more risk than an almost guaranteed short - term bond fund.

A: When you know you will need the money within 2 years, I don't think you should take any more risk than a short - term investment grade bond fund.

But these risks need to be kept in perspective: if you hold a bond fund with a duration shorter than your time horizon, your capital is not at risk.

That gives it substantially more credit risk than investment - grade bond funds, but the high - yield short positions moderate some of that risk.

Even a low risk mutual fund is still riskier than a bond.

Even if you are willing to accept some credit risk, and invest in something like the popular Vanguard Total Bond Market Index fund, the SEC yield is only 2.05 % (2.17 % for Admiral Shares, $ 10K minimum), still lower than the federally insured CD which has no credit risk.

Bond funds or bonds are conservative, low risk, and highly liquid investments that are ideal for investors who wish to enjoy government - backed funds and higher returns than savings and money market funds.

A person whose portfolio features higher - risk investments than typical index funds and bonds needs to be more conservative when withdrawing money, particularly during the early years of retirement.

And OF COURSE, since you are blogging about this, you already know there are other risks to bond funds than just the credit / default risk.

I remember reading long ago that if you want to add bonds to your portfolio, to buy them directly rather than in a bond mutual fund because a bond fund holds more risk, especially when it comes to government bonds.

These funds expose you to more risk than typical bond funds.

Lower volatility than most stocks and high - yield bond funds due to more reliable income sources and lower default risk

To minimize the currency risk associated with investment in bonds denominated in currencies other than the U.S. dollar, the Fund attempts to hedge its foreign currency exposure.

Now that these bonds have fared so much better than stocks this past decade, we'd expect to have lower allocations to bonds than we had on average since we started these portfolios in early 2002, but we'll still use bond funds to reduce total risk of a crash, and as a parking place to have something to add to stocks when stocks tank again, as they eventually will.

The likelihood of your $ 500 investment being completely evaporated is very slim, but if you lose $ 300 here, the thousands invested in the S&P 500, low risk stocks, government bonds, and mutual funds will more than recuperate the losses.

Jeffrey Gundlach, founder of DoubleLine, which has been the best performing bond fund so far this year, tells the FT's Dan McCrum that deflation is a greater risk than inflation because he believes it would take another crisis to trigger big monetary policy changes.

The downside is the fact that because of the minimal risk of owning GICs, the return is generally a lot less than for bonds, stocks and mutual funds.

The Fund's investments in high - yield securities or «junk bonds» are subject to a greater risk of loss of income and principal than higher grade debt securities.

In Emerging - Market Bonds, Political Risk Is a Constant For the last several years, emerging - market bond mutual funds and E.T.F.s have offered better returns than developed - world debt.

Merger Funds: More Tame Than Reputation Some investors have been turning to a mutual - fund niche that may offer an attractive way to diversify away from the risks of stocks or bonds: funds that engage in merger arbitFunds: More Tame Than Reputation Some investors have been turning to a mutual - fund niche that may offer an attractive way to diversify away from the risks of stocks or bonds: funds that engage in merger arbitfunds that engage in merger arbitrage.

With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.

Also, note the observation that the long - term Treasury fund, with no credit risk but large term risk, has a higher standard deviation of annual returns than does the high - yield corporate bond fund, which has significant credit risk but much less term risk.

Long - term nominal bonds, like those in the long - term Treasury fund, have significant risk of returning much less in real terms than in nominal terms, due to the risk of unexpected inflation.

Seeking opportunities through mortgage - backed securitiesBroad securitized opportunities: The fund invests in mortgage sectors, including agency MBS and CMOs, and non-agency RMBS and CMBS, and ABS.Higher potential returns: By investing in mortgage - backed bonds, the fund can offer the potential for higher returns than an investment strategy focused only on agency MBS.Leading research: The fund's portfolio managers use proprietary models to assist in the evaluation of mortgage - backed bonds and to manage the fund's interest - rate risk.

Some of the Domini Social Bond Fund's community development investments may be unrated and carry greater credit risks than its other investments.

I happen to be a strong believer in managing risk through a high quality bond fund or CDs rather than using options.