Date: Sun, 19 Jun 2005 16:13:36 CST
From: zxcvbob 
Newsgroups: misc.invest.financial-plan
Subject: Re: corporate bond funds
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	zM0QfkUVWncK2grw2rktmyPtypVTyYnVLEGZjO9MHhN+MfAy6DsbZw==
	=LSy/

markdemers15@hotmail.com wrote:
> I'm tired of equities and want to allocate 20% of my portfolio to
> medium to high return
> corporate bond fund.  I have an
> account with Schwab.  Can anyone suggest a list of the "best" funds?
> 
> Mark Demers
> EquityValue Investments
> http://groups-beta.google.com/group/equityvalue?hl=en
> 


It might be safer to buy individual bonds than to buy a fund; if you buy 
a fund and interest rates go up you will lose probably equity.  If you 
buy individual bonds, you have the option of holding the bonds to 
maturity if the bond market tanks -- you will eventually get all of your 
equity back plus the interest unless the company defaults on the loan. 
(The default risk is why you will want to diversify your bond holdings 
just like you would equities.)

Best regards,
Bob

P.S.  I bought a bunch of GMAC bonds a month or two ago, the day before 
they tanked.  If I'd bought a few days later I'd have a very nice 
capital appreciation right now instead of a small loss.  So take my 
advice with a grain of salt.