Municipal Bond Forum
Adding to your fixed-income portfolio
Q
I already own some individual municipal bonds from you and would like to now add to my fixed-income portfolio. Should I invest in a tax-exempt muni bond fund from a brokerage firm or an individual muni bond from you? What are the pro and cons of these two?
A
James A. Klotz responds:
We only recommend bond funds for investors who are unable to achieve proper diversification with individual bonds.
We don’t think bonds need to be actively managed and the annual fees require investors to sacrifice too much income.
Another negative characteristic of bond funds is they have no maturity date. With individual bonds the principal is guaranteed at maturity.
Start here.
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This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.