Again, apologies for the naivety of the question. If the only way for the interest rates is up( whether in the next month or next year or over the next 5-10 years), and bond funds will always loose value in the face of increasing interest rates, how does one hope to make any money on the bond funds either short term or long term.

So, if one keeps systematically investing 1500 dollars in Vanguard total bond fund for the next 15 years...and the interest rates go up by 5% in the next 5 years and then plateaus and then perhaps falls at some distance point in future..Is the bond fund only going to shows returns as and when the interest rates fall?

Also, I understand that the stocks give money by 1) increase in stock price which can happen even if interest rates go up 2) by giving dividends

How do bond funds work? May be, I am just confused/ prefixed that the bond fund only gives money if interest rates fall and that is completely wrong notion.

Thanks for all the input.

So, if one keeps systematically investing 1500 dollars in Vanguard total bond fund for the next 15 years...and the interest rates go up by 5% in the next 5 years and then plateaus and then perhaps falls at some distance point in future..Is the bond fund only going to shows returns as and when the interest rates fall?

Also, I understand that the stocks give money by 1) increase in stock price which can happen even if interest rates go up 2) by giving dividends

How do bond funds work? May be, I am just confused/ prefixed that the bond fund only gives money if interest rates fall and that is completely wrong notion.

Thanks for all the input.

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