No. of Recommendations: 2
So my question is: Is this difference between individual bonds and bond mutual funds significant enough to warrant my attention?

Yes. I've been cautioning people about buying bond funds or ETFs for years. Bond rates are dangerously low right now and it isn't going to end well for the unwary. But, what do I know?

and how can an individual investor buy single bonds without paying huge premiums?

You don't unless you're buying US Treasuries through Treasuries Direct.

The individual investor is at an extreme disadvantage in the bond market. It doesn't work the way things do in the equities market. If you really want to get involved in bonds, then buy some books on the subject - hopefully books that aren't merely cheerleader's guides, if you get my meaning. Also, head for the Bonds & Fixed-Income board here on Fool and see the FAQ.

Hedge
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement