How to invest wisely in a bond fund

Nation's Business, March, 1996 by Randy Myers

In line with your search for low expenses, choose a no-load fund (one that charges no upfront sales fee) over a load fund (which does charge such a fee), provided other aspects of the funds are equal.

The key is to find a low-cost fund with a solid track record established by its current manager and an investment style that matches your objectives and tolerance for risk. If you succeed in this search, you'll enjoy most of the returns you'd get from individual bonds without devoting the time or resources necessary to build a diversified portfolio of bonds on your own.

Five Top-Performing Bond Funds
  Each of the following funds ranked first in total return
performance within its fund type for the five years ended Nov.
30, 1995.
                                                   Total Return
                                                      Over Five
Fund Type             Fund Name                           Years
Government, General   Fidelity Spartan L-T Govt.*        10.91%
Government Treasury   Vanguard Fixed/Income L-T Corp.*   12.09
Corporate, General    Federated Bond Fund--Fortress      17.30
Corporate, High
 Quality              Vanguard Fix.d/Income L-T Corp.*   12.71
Muni National         Smith Barney Managed Munis A       10.57