The bond investor who reinvests dividends holds the key to better performance. He should hold the fund longer than the stated duration period of that fund.
If his intended investment period is more than 4 years, for example, it will be profitable to hold a bond fund with duration of at least 4 years. Long-term bond fund investors are always ahead.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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