![Why Duration Funds Are Favored By The Mutual Fund Industry? Why Duration Funds Are Favored By The Mutual Fund Industry?](https://vvstockzone.com/wp-content/uploads/2024/06/vvstockzone.com-4-600x400.png)
Why Duration Funds Are Favored By The Mutual Fund Industry?
Duration funds, which invest in longer-maturity bonds, have the potential to generate higher returns compared to funds with shorter durations. When interest rates decline, the prices of longer-duration bonds rise more than shorter-duration bonds, allowing duration funds to capture greater capital appreciation. This can lead to stronger overall returns for investors during periods of falling…