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Fixed term bond trend: Investors need to be aware of big penalties
- Investment Management
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- 22.05.24
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Investors flocked to fixed term bond funds when they were still very timid about taking market risk - and these are very insulated from markets' ups and downs. However, there are big penalties for investors who get the timing wrong in terms of withdrawing funds, and credit risks do exist. Here, Morningstar explains the opportunities and pitfalls of fixed term bond funds and explores the emergence of ETFs in this space.