Time to Take Stock of Your Bonds?

It's a good time to make sure your allocation to bonds still matches your goals and risk profile, says Morningstar's Eric Jacobson

Eric Jacobson 21 February, 2012 | 1:24PM
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Bond funds are rarely the topic of choice at the proverbial cocktail party, but they've been wildly popular with investors in recent years.

Of all the mutual fund categories that Morningstar tracks, none has seen greater growth in assets over the past five years than that of the intermediate-term bond-fund category, which drew in $304 billion in net flows since the end of 2006, more than doubling in size.

Some smaller bond categories grew at an even faster rate. The short-term bond category has grown more than 150% since 2006, for example, while the world-bond category--easily dominated by Templeton Global Bond, which comprises more than a third of its assets--has more than doubled in size over the period.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Eric Jacobson  is director of fixed-income research with Morningstar.

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