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Larry Swedroe: Unconstrained Bond Funds: Not Worth The Risks

TedTed
in Fund Discussions
FYI: Faced with a low interest rate environment since the financial crisis of 2008, many investors have begun to seek higher returns than those available from safe fixed-income investments such as Treasuries and FDIC-insured CDs. The ongoing pursuit for higher bond returns has led many investors to investments known as “unconstrained” bond mutual funds (also referred to as multi-sector, absolute return, strategic income and opportunistic fixed income). In 2010, these funds attracted more than $170 billion in assets. In the succeeding four years, assets in unconstrained bond funds rose to $223 million, $275 million, $416 million and $462 million, respectively.
Regards,
Ted
http://mutualfunds.com/news/2016/04/12/unconstrained-bond-funds-not-worth-the-risks/

M*: Mulitsector Bond Fund Returns:
:http://news.morningstar.com/fund-category-returns/multisector-bond/$FOCA$MU.aspx

Comments

  • Sven
    Agree. There is no free lunch without taking on other risk.
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