Investors with over $1 million in investable assets have an interest in maintaining control, tax-efficiency, and transparency, often putting them at a disadvantage when investing in pooled bond funds. While bond funds may seem like a simple and convenient way to gain exposure to fixed income, they come with several drawbacks that make them less suitable for investors with substantial wealth. These drawbacks include reduced yield potential, higher costs, and less control over portfolio management. On top of those drawbacks are the lack of transparency into what the real yield and holdings are. Here’s 6 reasons investors with over $1 million should avoid bond funds: 1. Reduced Yield Potential One of the primary issues with pooled bond funds is their exposure to older, lower-yielding bonds. Bond funds typically hold a mixture of bonds acquired over a wide range of time periods, many of which may have been purchased during times of lower interest rates. Some of these bonds bought prior to you investing in the fund may carry high prices and low yields-to-maturity. For example, bond funds that were built over the past decade may