Investing in individual bonds may not be appropriate for the average investor.

That was the sentiment expressed by Charles Schwab, the nation's No. 1 discount brokerage, in a recent research note. The report weighed the merits of both individual fixed-income securities and fixed-income mutual funds to help individuals make a sound investment decision. "With the current upheaval in bonds, there are a lot of distractions in the marketplace that make it difficult to determine which fixed-income investment best fits an individual portfolio," wrote Dr. James Peterson, vice president of the Schwab Center of Investment Research.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.