3 Good Funds With Big Credit Risks
Don't expect funds that have fared well during the rally to hold up during a correction.
This article was published in the May 2014 issue of Morningstar FundInvestor. Download a complimentary copy of Morningstar FundInvestor here.
No fund strategy can succeed in every market environment, but investors who know what to expect can put inevitable slumps to good use by adding to (or at least just sticking with) their underachievers. Recent history underscores the virtues of patience: The funds that soared highest during 2009’s rally, after all, typically ranked among their categories’ laggards during 2008’s stampede into quality.
Shannon Zimmerman does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.