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How Bonds Can Calm Anxious Investors

INVESTORS OVERWHELMED by the vast array of bonds available today have a simple solution: buy a fund. Managed bond funds leave the hard work to professional managers, and index bond funds, like their stock-owning counterparts, simply buy the bonds in an underlying index. But standard bond funds don't allow the investor to simply wait out down periods as one can do with stock funds and individual bonds that can be held to maturity. If bond prices are down when you need your money, you could wipe out years of interest earnings.

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