Investors have been using bond funds to reduce their risks, but these investments aren’t as safe as many people have been led to believe. We recently wrote on article on this very subject, Don’t Make the Mistake of Believing Bond Funds Are Without Risk, and discussed the drawbacks to these investments.
Bond funds can fluctuate in value and there is the chance that you could lose principal. On top of that, rising interests rates and activities of other investors could impact the bond’s value.
Even though bond funds are often marketed as safe investments, you need to be cautious about these investments. If you have lost money in a bond fund and feel as though your broker did not disclose the risks or was negligent in some way, you should contact an experienced securities arbitration attorney for advice.
For a free case evaluation, contact our office today. To learn more about investment and broker fraud, order a FREE copy of attorney David Meyer’s book, Five Signs of Investment Fraud…And What to Do if it's Happened to You.