1.   However, junk funds would not be appropriate for risk-averse investors or those whose portfolios are too small to be diversified.

2.   Martin Fridson, the junk bond guru at Merrill Lynch, notes that in previous peak periods, junk funds were inundated with money when interest rates were falling.

3.   Over the next couple of years, junk funds were wonderful performers.

4.   Still, professionals caution investors against buying a junk fund on the basis of yield alone.