FYI: There are a number of bond mutual funds designed to be core holdings for investors. The bond market faces uncertainty coming into 2016. The Federal Reserve has indicated it will begin raising interest rates in late 2015 or early 2016. The Fed has kept interest rates at historic lows since the 2008 financial crisis. However, with the economic recovery over the recent years, the Fed believes the economy can handle an interest rate increase. Although the Fed has said an increases will be small on an incremental basis, this could have an impact on bond prices. However, having an allocation to a bond portfolio is still a good idea for almost all investors.
Regards,
Ted
http://www.investopedia.com/articles/investing/010816/top-5-core-bond-funds-2016.asp
