No Load Bond Funds
  • No load bond funds are a great investment option, especially during a recession
  • No load mutual funds have a number of great benefits for investors
  • No load stock funds may be considered too risky or volatile during a recession

Are no load bond funds a safe investment for your money during the current recession? The answer is yes for a number of reasons. Mutual funds offer many advantages, and the biggest one is that many investors pool their investment capital. This larger pool of funds can do a lot more than small individual amounts alone. Bonds are usually considered safer and less volatile and risky than stocks and other investment types, but this will depend on the bonds that are included in the fund you choose for your investment needs. Because of the recession and the sinking economy, many investors may not want to invest for fear that the markets will fall even further and investment capital will be lost. This is not a big risk if the no load bond funds you use are considered very stable and secure, and invest in low risk bonds such as treasury and other government bonds.

No load mutual funds including bond funds offer the flexibility that many investors want in their portfolio. With these funds you do not have to stay with the same bonds even if your life and circumstances change. Because these are no load funds there is never a commission or third party fee involved. This will make a big difference, especially if you have children or have other family circumstances that may make changes later on inevitable. Choosing funds that carry a load fee means paying a part of your investment every time you want to change where your capital is invested at.

No load stock funds can be very volatile, and the stock market has been up and down frequently. A lot of investors are avoiding these types of no load mutual funds because of the higher risks involved. Instead you can find no load funds which consist of bonds that are rated AAA, so they are more secure and a better value. Mutual funds can seem very confusing because of the different types and regulations of these funds, as well as differing investment amount minimums and the risk and volatility levels. No matter what type of no load mutual funds you invest in, make sure that the risk levels are acceptable.

No load bond funds are also known as income funds, and bonds are the primary investment type that these funds make. This is debt equity and bonds are considered debt securities, because bonds represent loans that are used by governments and businesses to raise money. Bonds are normally issued for a specific time period, and these securities pay interest as well as the repayment of the loan principal. Government bonds are extremely stable, because the risks are low that a United States government entity will default on the payment. Bonds for other governments and corporations can be higher risk ventures, depending on all the specific factors.

No Load Stock Funds

No load bond funds are a great way to protect your investment capital and prevent losses. Many bond funds may have lower returns than no load stock funds because the risks are much less, but during a recession small gains in your investment is a terrific investment. Most stocks are lower than they were one year ago, but bonds are more flexible and not as volatile usually. If you want to invest but the wide swings and high risks of many markets makes you hesitant to put your investment capital in, look at suitable no load bond funds as a safer and better choice during these tough economic times. During a recession because of market changes and instabilities bond funds are a better option for anyone who wants to preserve capital and see small but positive returns.