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January 14, 2013

4 bond fund options in case rates rise

  • The shorter the average maturity duration of bonds in a portfolio, the less vulnerable the fund will be to rising rates.
  • By MARK JEWELL
    AP Personal Finance Writer

    BOSTON — Super-low interest rates will eventually rise, and when they do, bond investors could be stuck with losses.

    It's a warning that's been heard frequently in recent years. Often, it's coupled with a reminder of the huge amount of cash — more than $1 trillion — that bond mutual funds have attracted in the past five years.


     
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