Investing in a Bond Fund is Risky
September 3rd, 2010 by admin
When people are getting scared like they have been, they will drop their equity funds and start getting into asset classes that are considered less risky and more income-guaranteed. If a term deposit is out of the question, then that will leave one last option: investing in a quality Bond fund such as the PIMCO fund managed by superstar fund manager, Bill Gross. But one thing investors have to remember is that investing in fixed income securities like bond funds is a risky proposition as the economy comes out of the recession and starts heading back toward periods of economic expansion. Tread carefully here, folks.