People who are close to retirement would like to go for a less risky investment like Bond Funds. Retirement bond funds offer low volatility and provide a stable and steady source of income with their yields. Bonds are mainly used for diversifying an individual’s portfolio along with equity. Bonds are not totally risk-free but are considered a safe Retirement Investment. Several Retirement Bond Funds are available, depending on the owner’s risk tolerances:
- Vanguard bond market index fund: The Vanguard bond market index fund offers a wide exposure to the US investment retirement bond funds. This fund invests 30% of the amount in corporate bonds and the remaining 70% in the US government grade bonds. This is designed as a core bond holder for different portfolios.
- Double line Return Bond Fund: The double line total return Bond Fund mainly focuses on the MBS (mortgage backed securities). This has a short maturity and is risky to some extent with allocations towards the government bonds. This fund is managed by Jeffrey Gundlach, who is one the most skilled bond fund experts.
- Fidelity Bond Fund: This type of bond fund invests 80% of the portfolio in the debt securities of every type. The fund allocates the assets in every bond type which includes high yield bonds, market fixed income securities and investment grade bonds.
- T. Rowe Price Floating Fund: The mentioned floating retirement bond fund focuses on the debt securities and floating rate loans. Many of the bonds which are included are riskier and are called junk bonds. The fixed income securities are connected to acquisitions, leveraged buyouts, and recapitalization.
- Vanguard Short Term Index Fund: The Vanguard short term bond index fund is another good option for retirees who want to invest their money. The people who are worried about the risk associated with the increasing interest rates can invest in such Bond Funds.
These retirement bond funds are the best choices for an individual who is close to retiring.