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I personally think bond funds (not bonds) are a little risky right now. As interest rates rise, the price of the bond will drop which means you might have to hold the bond until maturity to avoid selling at a loss. Frex if you buy a five-year bond now when interest rates are low and think about selling it three years from now in a time when interest rates are presumably higher, it may be unattractive and you have to hold the bond to maturity to avoid taking a loss.

But a share in a bond fund never matures, as interest rates rise the return of the bond fund will rise, but the share price (NAV) of the fund will drop. But because it's a fund, you can't hold a share to maturity because there is no maturity and can't sell without taking a loss.

Since we're at a time of historically low interst rates, I think it's reasonable that interest rates will be higher in the future than now, meaning bond funds (not bonds) are unattractive. That's just a SWAG though.

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