Muni-bond funds continue to experience high investor demand, and Morningstar's Miriam Sjoblom offers picks for core and noncore holdings.
The muni market has seen a strong recovery since 2009, though these tax-advantaged products are much safer in some regions than others, says Morningstar's Jeff Westergaard.
Fixed-income investments are still necessary, but with tight credit spreads right now, obtaining extra yield carries heavy risks, says Zebra Capital chairman Roger Ibbotson.
Taxable-bond funds led open-end asset flows in February, with investors showing interest in emerging-markets bonds and bank-loan funds.
Investors were down on the municipal bond market for a third straight week as $261 million poured out of weekly reporting muni bond mutual funds for the week of March 20.
Municipal bond mutual funds saw outflows for a second straight week, at $133 million, as the market absorbed a large calendar with concessions.
This portfolio balances capital preservation with growth potential.
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