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Mutual Fund Investors buying bond funds at the wrong time

Mutual fund investors continue to pour billions into Bond Mutual Funds starting 2010. This could prove to be a big mistake when interest rates start to rise in the second half of 2010. Asset values follow the under-lying asset, bonds in this case, which will have price deterioration as interest rates rise. This is more exacerbated when the bond fund holds intermediate term and/or long term bonds. Short-term bonds will definitely not lose as much value when rates rise.Read this article for more information on mutual fund

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