Retirement Strategies

Four Fixed-Income Funds to Add to Your Portfolio

04/21/08 - 02:37 PM EDT

Roger Nusbaum

It is very unlikely that bonds (referring to the entire asset class) can outperform equities over the long term. With that understanding, the biggest reason for owning bonds becomes offsetting the volatility of equity portion of a diversified portfolio.

Given the distortion in the fixed-income market caused by abnormally low Treasury yields, the bond market should be thought of as being unusually risky these days.

If you look at any of the funds listed above, you might be struck by how boring they appear to be -- which is exactly the part of the bond market to be in because of the heightened risk.

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At the time of publication, Nusbaum was long VFIIX, MIN and PLMIX on behalf of clients, although positions may change at any time.

Roger Nusbaum is a portfolio manager with Your Source Financial of Phoenix, and the author of Random Roger's Big Picture Blog. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Nusbaum appreciates your feedback; click here to send him an email.


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