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Why Do Investors Keep Buying Bond Funds?

Intermediate-term bonds are gaining assets despite a rising interest-rate environment as investors continue to seek diversification and income.

Christine Benz: Hi, I'm Christine Benz for Morningstar.com. The Federal Reserve boosted interest rates in the first quarter of 2017, but investors continue to buy bond funds. Joining me to discuss the latest fund flow data is Alina Lamy. She is a senior analyst with Morningstar.

Alina, thank you so much for being here.