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Additionally, a fund of shorter-time period bonds indicates an investor can take on a small quantity of desire fee hazard. So climbing or falling premiums received’t have an effect on the cost of the fund’s bonds very much.
Lower transaction expenditures: A good small-expression investment doesn’t Expense lots of money to get into or outside of, unlike a household, for instance. That’s In particular important when yields on limited-time period investments are small.
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