Some investments you think are safe might actually be losers

Lyn Dippel, a vice president and senior adviser at Financial Advantage Inc., in Columbia, Md., said no one can be guaranteed they won't lose money in a bond fund, but she suggested some strategies to make sure it's less likely.

Investors should buy bond funds that invest in only U.S. treasuries as a way to reduce risk. Theoretically, Treasury bonds can't be downgraded as a corporate bond could be.

Also, they should buy shorter term bonds.

"Long-term bonds are more volatile and sensitive to interest rate changes and credit ratings," Ms. Dippel said, adding that investors will sacrifice some yield for the safer quality bonds.