bond

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sampark
Posts: 5
Joined: Thu Feb 06, 2020 9:01 pm

bond

Post by sampark »

I don't need a full evaluation of my portfolio. Just have a quick question. Do people still invest in bond fund (short term or intermediate) ? I am debating between buying short term Treasury Bill and buying the short term or intermediate bond funds. By buying short term treasure bill, I don't have to worry about the up and down of the shares. Any thoughts would be appreciated.
livesoft
Posts: 85972
Joined: Thu Mar 01, 2007 7:00 pm

Re: bond

Post by livesoft »

Yes, people still invest in bond funds. And people do other things. I suggest you do all the things that you are thinking about and not just one of them.
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placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: bond

Post by placeholder »

For instance all of my fixed income is in my 401k where the only options are funds.
dbr
Posts: 46137
Joined: Sun Mar 04, 2007 8:50 am

Re: bond

Post by dbr »

sampark wrote: Tue Jun 06, 2023 12:46 am I don't need a full evaluation of my portfolio. Just have a quick question. Do people still invest in bond fund (short term or intermediate) ? I am debating between buying short term Treasury Bill and buying the short term or intermediate bond funds. By buying short term treasure bill, I don't have to worry about the up and down of the shares. Any thoughts would be appreciated.
Of course they do. All the conversation about declines in bond fund values when interest rates go up and long running threads about bond trading are side shows to the vast unwashed masses that go on with the plan and don't waste time participating in discussions.

As above many people hold bond funds just fine in retirement plans where that is the most simple or even only way to hold bonds. My 401k is 100% bonds in bond funds. People who are invested in target retirement funds are also invested in bond funds.

Long term investment plans are probably best filled by holdings of intermediate duration funds than short ones. Picking a less effective duration so that "I don't have to worry about the up and down of the shares." is probably in the class of a behavioral error than a solid financial strategy, though it is probably hard to prove that bond duration in mixed portfolios of stocks and bonds has a critical effect on any one's outcome.
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