I have been looking into this fund for my retirement accounts (hat tip to Theedge for mentioning in another thread). I'm tired of 0% returns but definitely wish to avoid equities. But I'm also leery of bond funds since a 10% sell-off can wipe out any gains from the coupon in one day. This particular fund is a little different in that it has a fixed maturity date of 12/31/15 and I had a few questions:

1) Would a fund like this return your principal if held to maturity, or would you cash out at whatever the NAV is on that date? This is what the prospectus says: "In connection with such termination, the Fund will make a cash distribution to then-current shareholders of its net assets after making appropriate provisions for any liabilities of the Fund. The Fund does not seek to return any predetermined amount at maturity." but that doesn't really answer my question.

2) What are appropriate ways to hedge bond funds since you can't buy puts? What other types of investments do you use to hedge bond holdings, particularly a corporate bond fund like this one?

3) Would a corporate bond fund be more or less at risk during a stock market sell-off?

This market really sucks and I don't have the experience or time during the day to be an active trader, nor the inclination really. I want to be an investor but that seems impossible in this 'market'. But I'm also really tired of seeing my savings eaten by inflation. Would greatly appreciate any insights. Also, please move to a different forum if this isn't the right place for this.

I see nothing for BSFJ Hip.

Sorry, should be BSJF. Fixed now in my original post.