«People purchase
bond funds when they are looking for a
safe way to get returns,» said Charles C. Scott, president of Pelleton Capital Management in Scottsdale, Ariz. «However,
bond funds can be
somewhat risky when interest rates rise, and the
bond funds lose some of their principal value.»
I don't recommend it, but if you want to shoot for a
somewhat higher return with a portion of your «
safe harbor» stash, you could move some funds into an ultrashort - term
bond fund, bank loan fund or even a short - term
bond fund.