A Checklist for Taxable-Bond-Fund Investors
Five considerations for those investing in fixed-income funds.
Note: This article is part of Morningstar's November 2015 Income Investing Week special report. This article originally appeared March 17, 2015.
A bond is a pretty simple investment. Governments and corporations issue bonds to raise money, and in return, they offer bond investors regular interest payments and a return of the principal investment at the bonds' maturity dates. Investors--especially income-seeking investors, such as retirees--like bonds for their steady stream of income and stability when compared with stocks.