When my clients, friends or readers ask, “Which are the best bond funds to buy now?” the answer always begins with two words – it depends.
Bond mutual funds have several purposes, and we may come closer to an answer by breaking these purposes into three primary categories — short-term investing, long-term investing and income. Today’s list will highlight a bond fund from each of these categories.
Other factors in choosing the best funds at any given moment tend to hinge upon prevailing economic conditions. For example, if the job market is eroding and inflation appears tame, the Federal Reserve is likely to continue its lower-for-longer rate policy, which could then put downward pressure on yields and upward pressure on prices — not good for income investors but good for long-term investors.
So no matter your objective, one of these three bond funds is likely to suit your needs right now.