I'm looking at putting some money into bonds at the moment, my advisor is pushing me to put them into a bond fund, but, I don't understand what the advantage of that would be over just buying a Government bond?
With the Government bond, you know the end date, and you are guaranteed that rate, so whatever happens, you won't lose money and you will get the interest owned... but with bond funds, you're adding extra risk because if interest rates continue to go up, the price of the bond fund goes down, and with no end date, you're just forever locked into this fund now and can't sell without taking a loss (unless interest rates go down that so price of bond fund goes back up).
Am I missing something or some other advantage of bond funds over individual bonds?
Submitted June 25, 2023 at 06:53AM by honkballs https://ift.tt/ZyX31IF
