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good afternoon; imho these are not bad investments, they are just too volatile. they swings and highly correlate w/ oil/energy vehciles. these could be good companies to have for 5-10+ yrs since demand for energy most likely will increase due to over-populations. I do personally have evep - very good yield and I am very happy w/ this investment or you can also buy AMJ
I would not bet my whole house on them but just about 1-2% of portfolio would do
I own the Salient MLP Energy Infrastructure Fund (SMF; closed-end fund, so it can trade at a discount.) Still rather volatile, but the fund is unique in that it can use equity, commodity, interest rate and credit hedges (one or more or all.) MLPs are also frowned upon a bit by some due to the k-1 tax form (not an issue for *some* of the funds, but an issue for individual MLPs.)
I like the fund and may take a little profit into this, but otherwise I consider the majority a long-term holding due to its unique ability to hedge - and it is the only MLP fund that can do so. It won't be hedging in a manner that's going to save the day if the market tanks, but it'll likely (no guarantees, but likely) be less volatile (still noticeably volatile, just less in comparison) than other MLP funds and somewhat more comfortable to hold over the longer term.
I do agree that MLPs are volatile and I think there are going to be overbought periods with people searching for yield, but I think the growth prospects going forward are good, and I do think real assets (infrastructure, pipelines, etc) are going to fare well in the next 5-10 years.
they are not bad; they have a complex tax structure and tend to lose tax benefit if they are sold via any fund vehicle (open or closed). they should be purchased individually. there are no bad investments. there are bad investment decisions.
Comments
imho these are not bad investments, they are just too volatile. they swings and highly correlate w/ oil/energy vehciles. these could be good companies to have for 5-10+ yrs since demand for energy most likely will increase due to over-populations.
I do personally have evep - very good yield and I am very happy w/ this investment
or you can also buy AMJ
I would not bet my whole house on them but just about 1-2% of portfolio would do
http://www.istockanalyst.com/finance/story/5479201/fuel-your-portfolio-with-these-natural-gas-investments#
I like the fund and may take a little profit into this, but otherwise I consider the majority a long-term holding due to its unique ability to hedge - and it is the only MLP fund that can do so. It won't be hedging in a manner that's going to save the day if the market tanks, but it'll likely (no guarantees, but likely) be less volatile (still noticeably volatile, just less in comparison) than other MLP funds and somewhat more comfortable to hold over the longer term.
I do agree that MLPs are volatile and I think there are going to be overbought periods with people searching for yield, but I think the growth prospects going forward are good, and I do think real assets (infrastructure, pipelines, etc) are going to fare well in the next 5-10 years.