When choosing the best bond funds for clients, I like to start with a solid core fund that I can hold for the long-term.
Although tactical plays in the short-term can be smart from time to time, I’ve found that looking out a decade and beyond is wise. For example, if you pay much attention to capital markets, you may have noticed that the bond market can be more complex and even more difficult to forecast from a month-to-month or year-to-year basis than stocks.
Even some of the best fixed-income portfolio managers in the world miscalculated the timing of higher interest rates over the past three to five years. The famous fall of bond king Bill Gross back in 2014 was preceded by massive outflows arising from his missed call on rising rates, which still hasn’t materialized as of this writing.
So when you want to find the best bond funds to buy for your own portfolio, you’re wise to focus most or all of your attention on the bond funds built for the long-term, such as these three funds: