Question: My 401K has a mid-term bond fund available. I have looked at the holdings in it which seem very deversified with different interest rates and maturity dates. Would this bond fund be less volitale than others? I am 55 and thought perhaps I should be placing some funds portion in bonds. Would appreciate any answers.Bond fund volatility is, in the long run, a function of the duration and maturity of the fund's bonds. The shorter the maturity, the less volatile. On the other hand, shorter maturities tend to yield less, so you need to make a choice as to how much risk or volatility you're willing to accept. Mid-term bonds are probably a reasonable choice for most investors.
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