Dividend Funds Won’t Cut It
Over the last few months, a lot of focus has been placed on dividend funds as an alternative income strategy for investors who are currently in bond funds. The reasons are simple: bond funds are expected to tank once interest rates start to climb.
But for a lot of investors, getting into a dividend fund, which is 100% equities for the most part, does not make much sense. It is too risky for a lot of investors. As a true alternate, Balanced funds have more to offer including an ownership take in less volatile and higher income producing bonds. It is a merge of the best of the dividend and bond worlds.
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