Wed, 12 Oct 2016
"No load" sounds simple--but it is not.
Morningstar's Eric Jacobson outlines three short-term bond funds that can protect against rate sensitivity, but mind the risks as such funds aren't cash substitutes.
Recent Morningstar research shows that while some buys exist across the equity fund universe, many areas, such as dividend-paying stocks , are close to fully valued.
Muni- bond funds continue to experience high investor demand, and Morningstar's Miriam Sjoblom offers picks for core and noncore holdings.
As economic concerns weighed, taxable- bond funds were the strongest asset gainers in May, but their inflows were only about half what they were the prior month, says Morningstar's Kevin McDevitt.
September and third-quarter asset-flows data show that investors remain cautious of interest-rate risk and a fully valued stock market, and instead prefer nontraditional bonds and foreign equities.
The Federal Reserve's bond purchases are contributing to greater inflows into fixed-income funds, while demand for stock funds is near multiyear lows.
Don't assume all index funds are low cost and tax-efficient, and avoid overdiversification and becoming too hands-on, says Morningstar's Mike Rawson.
As rising rates and emerging markets lose momentum, fund investors are eyeing nontraditional fixed-income categories and European and Japanese equities.
Morningstar's Christine Benz and other financial experts weigh in on what to do when a sound portfolio practice collides with an unattractive asset class.
This portfolio balances capital preservation with growth potential.
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