So if you diversify into junk bonds funds, you'll only want to take a small sip of beer now. The funds have a zero interest rate risk and a similar yield to bond funds of all stripes. No matter what type of bond or money market funds interest you, Fidelity's selections cover all kinds. My choices for money market funds are Fidelity Cash Reserves and Fidelity Daily Income Trust . Virtually all the bonds in this fund have ratings of BB or lower, or are simply unrated.
Junk bonds are the riskiest portion of the domestic bond market.
But virtually all bonds are safer than stocks, so if you're able to stomach stock market risks, just pretend that your junk bond fund is a conservative stock fund. All rights reserved.