Best Bond Funds to Consider

Best Bond Funds to Consider

The best bond funds are a decent way of investing your money and earning some profit. So if you want to get updated about the world of bonds and shares, this article would prove very helpful.
WealthHow Staff
The American public has learned the value of money the hard way. Effects of the economic recession were very disastrous. It left many homeless and unemployed. People had never expected that the market will fall so badly, that it will take almost 2 years to stand on its own feet.

In such trying times, people who had knowledge about how the market works were smart enough to save money, and also make investments which were there for the long run. So if you are looking out for some great investment plans, it's time you know about the best bond funds, you can consider investing in.

Bond funds are defined as a collective investment plan by investment companies. The company invests your money in various bond investments and other debt securities. When you sign up for a bond fund, you typically pay a monthly dividend on which you get interest payments.

People investing in these type of funds get higher dividends than certificate of deposit and money market accounts. If you haven't invested in bond funds in the last ten years, it can be said that you have lost a chance to make great money, which would have solved almost 80% of your financial difficulties.

In the last 5 years, bond funds have made more profit for their investors than any other sources of investments. However, you just cannot make a decision based solely on the performance of the last 10 years record. Your money is important and you should know every detail before investing into something.

Recommended Bond Funds

So before you get your feet wet, you should know about the best bond funds that can be trusted.

Delaware Diversified Income
Started in December 1997, the Delaware Diversified Income gives interests on long-term investments. It utilizes its major assets to buy high yield, foreign income securities. It also has its investments in short-term fixed income securities.

Oppenheimer Strategic Income
Next in line comes Oppenheimer Strategic Income. The company has its interest in securities issued by the US government, and high yielding domestic and foreign securities total up the fund's best investments. The company can invest in all assets or in any other sector and in some cases may not invest at all.

Franklin Strategic Income
The company believes in investing money in high yield bond funds, which means more than half of its assets are in domestic and foreign securities. It also invests in short-term fixed income securities.

Tax Free Bond Funds

These bond funds are sometimes called safe investments for a lot of people. These funds are mutual funds which invest in municipal bonds. The fund is considered to be tax free, as a result the investor will have a profit, and there are less chances that he/she will incur a loss.

Tax free bonds not only help you in saving tax money, but allows all its investors to have an active participation which ultimately benefits everyone. Bond funds in a tax free bond are categorized in 2 categories; loaded and no load bonds. Loaded bonds come with a commission which needs to be collected when the bonds are sold. No load bonds don't come with a commission.

Many times tax free bonds are associated with a private mutual fund. You can go to your financial adviser for more advice on bond funds, tax free bonds and bond fund duration. You can also have a detailed research on the Internet, where there are websites which keep you updated on the current status of your municipal bonds. Happy Investing!