Bond diversity without income?

I'm looking for an investment that provides reasonable long term gains with bond-type diversity over equities but pays off primarily in long term capital gains and/or deferred dividends rather than income. I don't need current income of any type and would like to grow my principle and ultimately be taxed as long term capital gains or qualified dividends BUT I believe in diversifying my portfolio. My time horizon before needing any liquidity is 10 years and I could invest up to $250K in this part of my portfolio.

This would be something very difficult to find, since the majority of bond investors do want income.

You can look into zero interest bond funds that come due in 10 years. I think the IRS will impute interest on the interest you didn't receive.

You could also look at exchange traded funds - ETF's - that hold bonds. There are probably some in it for capital gains and do not pay out much interest, but again you have the imputed income problem.

The best answer is long term municipal bond funds. Make sure they don't create alternative minimum tax problems. Reinvest you interest and dividends which will be tax free. You sacrifice on the rate of return and they really aren't run for capital gains, but they are probably the only realistic option you have.

do some research in the library and some of your friends

A few yrs ago Reit funds like RRE & the like would have been the answer. Large part of the dividends were capital gains or return of capital. there is no such thing as bond like diversity so makes it hard. Bonds do not diversify your portfolio at all they just balance it/take the edge of risk off. If don't have 5% gold would buy some IAU. No income there. SNH a reit likely to bring solid caputa; gains along with small income. EWA (Australia) & SWZ (Switzerland) are etfs from countries with low dividends that should grow. The best way for you to get close to what you want (no idea why you want it) is buying financial stocks or funds as they move counter to interest rates like bonds do. As close to "Bond-like" diversity as you can get without wanting income.