Best Bond Funds

Post on: 22 Сентябрь, 2015 No Comment

Best Bond Funds

Bond Mutual Funds

Top 14 Low Cost Taxable US Bond Mutual Funds, Low Minimum Deposit

The top 14 low cost taxable United States bond mutual funds, when you need a low minimum deposit

This top 10 + 4 article discusses the top 14 low cost taxable US fixed income funds, with low minimum deposits. In this article, we consider taxable bond funds with a $10,000 maximum initial deposit for a taxable account. Required minimum deposits in the list below are $3,000 for the 13 Vanguard bond funds and $10,000 for the Fidelity fund. The primary objective of this article is to identify low cost taxable bond funds, because low investment management fees are very important when selecting fixed income funds. This article will explain why.

Now, if you are one of those high savers who has been socking money away for a long time, you might have $100,000 or more to invest in a low cost bond fund. If you have a hundred grand for a single taxable bond investment fund, then you can buy a bond mutual fund with an even lower investment management expense ratio. We have also written a United States bond article that lists the Top 11 Lowest Cost Taxable US Fixed Income Mutual Funds. if you can make the higher minimum deposit of over $100,000.

When you review the bond funds list below, you will immediately notice that, except for a single fund offered by Fidelity, every other fund is offered by The Vanguard Group mutual fund company. This is not surprising, because Vanguards long term business strategy has been to offer the best bond market index funds at the lowest costs. Vanguard dominates this low cost United States bond mutual funds marketplace for direct purchase accounts with both low and high minimum deposits.

Best Bond Funds

What is important when you buy taxable bond funds?

Investment research overwhelmingly shows that lower cost fixed income funds tend to yield higher bond investing returns. The fixed income asset market is no place for you to try to beat the market and to attempt to get higher returns by active bond investing. Even professional fixed income asset market money managers do not beat the bond market. The higher the mutual fund company expenses, the lower the net returns to individual investors.

Professional fixed income asset market money managers do not achieve high enough returns to cover their higher fees. As a result, these higher costs cause you to get inferior net returns. You pay more. You get less.


Categories
Tags
Here your chance to leave a comment!