Another case for index funds

Wednesday, August 26, 2009 |

This time, it is slightly different.  It is the case for bond index funds.  Here is the snippet from the article Bond Indexes Beat Active Mutual-funds:

A study by Standard & Poor's found that on an asset-weighted basis -- measuring returns by the invested dollar rather than percentage of funds -- index returns beat actively-managed fund returns in all 13 fixed-income categories over one and three years, and in 11 of 13 categories over five year

For me personally, I follow recommendation and keep my fixed income securities in short term to intermediate term Treasury bonds and also in Treasury Inflation-Protected Securities (TIPS) as I am not looking at fixed income for growth, but as a way to reduce my portfolio risks.


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