RunningBum
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 18, 2007
- Messages
- 13,264
I guess I don't see how a bond fund vs individual bonds could be that different from a stock fund vs. individual stocks. Sure, you lose some control. For a bond fund, that means the value can fluctuate--up, as well as down. For a stock fund, you might take unwanted CG distributions without actually selling any of your stake. In return you get diversity and simplicity. I see a bond fund as more or less a ladder, with many different bonds at different rates and maturity dates.
If selling a bond early was such a bad deal as OldShooter's made-up scenario, no bond fund manager would ever sell unless they absolutely had to if they had investors bailing, and they'd find ways around that by keeping a cash reserve and having maturing bonds replenish that reserve. I just don't believe it. His bond friends can look at me with disdain all they want, without some hard evidence I'll stay in bond funds.
If selling a bond early was such a bad deal as OldShooter's made-up scenario, no bond fund manager would ever sell unless they absolutely had to if they had investors bailing, and they'd find ways around that by keeping a cash reserve and having maturing bonds replenish that reserve. I just don't believe it. His bond friends can look at me with disdain all they want, without some hard evidence I'll stay in bond funds.