The Pimco Long-Term U.S. government bond fund's duration is 10.9. As with different types of equities, an investor needs to gauge his or her tolerance for swings in value. You may get better returns from a long-term fund overall. But you have to be prepared for more volatility, for the possibility that when you need your money, there may be less than you put in. If the fund is not in a tax-protected account, the income will burden you with taxes.
Financial advisers have different opinions on bond funds generally.
People don't understand how very boring securities can whipsaw 30 or 40 percent a year. Edelman prefers balanced funds, those that hold both stocks and bonds. Chris Brown, of the Gaithersburg-based Commonwealth Advisory Group, considers bond funds useful to diversify portfolios for investors overexposed to stocks. He suggests short-term funds for their lower volatility. In the '90s, an equity fund with a 2 percent expense ratio could get by.