Here’s a good tip from HumbleDollar.com
TRUTHS
October 29, 2018
NO. 48: RISING INTEREST RATES hurt your bond portfolio’s value—and raise its long-run return. As rates climb, existing bonds drop in price. But thanks to the rise in rates, you can reinvest your interest payments at higher yields, boosting long-run performance. This reinvestment is easy with bond funds—a reason to favor them over individual bonds.
And it works for tax – free municipal bond funds too. And while you reinvest at higher yields you are also accumulating more shares of your fund.
QUINNSCOMMENTARY 