Income Investors, Get a Boost From a Floating-Rate Fund

In the first nine months of 2016, the average bank loan mutual fund earned 7.1%, as the loan market benefited from signs that things are improving for U.S. consumers.

(Image credit: ©Travelling Light)

This may be a good time to move some money from cash and short-term bonds into floating-rate bank loans. By doing so, you may well boost your income and hedge against potential losses in your bond portfolio should interest rates climb in the coming year.

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.