Short
Duration Bond Fund seeks current income consistent with preservation of capital through investment in high - and medium - grade fixed income securities.
As there are issues with both money market funds and ultra-short term bond funds, we recommend that you chose a short - term or low -
duration bond fund for this purpose.
Symbol: VMLUX Category: Municipal Bond Fund / Short
Duration Bond Fund Style: Active LB Rating: ***** 5 Stars Last Updated: 12/18/12
Scout
Low Duration Bond Fund (SCLDX): this flexible, tiny short - term bond tiny fund made a bit of money in 2015 (0.6 %), but it's more impressive that the underlying strategy also made money (1.4 %) during the 2008 meltdown.
The $ 100 million Nationwide Enhanced Income Fund (NMEAX) and the $ 73 million Nationwide
Short Duration Bond Fund (MCAPX) are both, simultaneously, merging into $ 300 million Nationwide Highmark Short Term Bond Fund (NWJSX).
In fact, if you don't hold bonds to maturity, you may experience similar interest - rate risk as a comparable -
duration bond fund.
A short
duration bond fund may be a better option.
For an example of short -
duration bond funds, here are the top results for short - term bond, and ultra-short bond category funds from Fidelity's mutual fund evaluator.
If you are comfortable with the risk of a bond fund, short -
duration bond funds may be an option for you to consider.
The Enhanced Duration shareholders must approve the move but «[s] hareholders of the Short
Duration Bond Fund are not required, and will not be requested, to approve the Merger.»
We are already using pretty short -
duration bonds funds, with a couple of exceptions, so we are pretty cautious now.
The portfolio duration for short
duration bond funds is 1.5 to 2.5 years; these funds can thus offer still - higher yields and returns than reserve funds, while controlling for risk and maintaining a focus on preservation of principal.
A short
duration bond fund may be a better option.