Three ways to diversify your bond mix

One of the most important investment decisions you can make is to choose the mix of stocks and bonds that’s right for you. But diversification goes further than just this mix. Take bonds, for instance: You can think of bond diversification in three main categories: bond type, bond maturity and bond sector.
Maturity Type |
---|
Short-term (up to 5 years ) |
Intermediate-term (6 to 15 years) |
Long-term (16+ years) |
Recommended Range |
---|
30% - 40% |
40% - 50%
|
15% - 25% |
If you find it difficult to diversify properly with individual bonds or prefer the professional management of a mutual fund, bond funds* may be right for you. Bond funds are generally diversified by maturity and sector, and can be an attractive alternative for many investors.
If you’re looking to improve your bond mix, contact your Edward Jones financial advisor. Together, you can determine which types and amounts of bonds are appropriate for you.
Diversification does not ensure a profit or protect against loss in declining markets.
*Mutual fund investing involves risk. Your principal and investment return in a mutual fund will fluctuate in value. Your investment, when redeemed, may be worth more or less than the original investment.