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BOND FUNDS vs. DIRECT BONDS

April 9, 2021
bondvsbondfund

BOND FUNDS vs DIRECT BONDS

Pros & Cons

  • Investing bond fund help risk diversification and usually perpetual without maturity date
  • Investing direct bond mostly have a fixed maturity date & coupon payments, so it offers a certainty with a rate of return, assuming the bond is held to maturity.
  • Important to understand their differences and limitations before investing.

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