There’s a new type of bond fund that aims to solve a shortcoming of traditional bond funds. But the jury is out as to whether they are worth buying. Bond funds offer investors broad diversification, professional management and regular income—benefits tricky to achieve with a collection of individual bonds. But they also have a downside: no fixed maturity date. Investors can’t simply wait out a downturn, knowing the price will move toward face value as maturity approaches, as they can with an individual bond.

Source: Wall Street Journal February 01, 2019 21:22 UTC