Fidelity FDMMX Bond Fund Thoughts/Risks
So, I inherited this fund a while back, it's a Massachusetts Municipal Bond Fund. It's weighted average maturity is 6.9 years. I've been trying to get my fixed income side of my portfolio in order and I've (stupidly) kind of let this fund ride. Luckily it's been doing well for me, but I'm wondering if I should get out of this and into something a bit more diversified. Problem is I'll owe taxes on the sale, but yeah, that's part of making money sometimes. I'll only owe about $1500 so it's not the end of the world, and I don't have any losers to sell right now to balance it off (again, good problem to have).
It's the interest rate risk I am most concerned about, but clearly there is some diversification risk as well. Then of course, is the other problem: If I sell it, where do I put the $$? Intermediate term bond?
Anyway, I guess I'm just wondering how others would view this fund, and what others are doing with their long term bond funds, if you have any.
EDIT: Need to include some more relevant info...I live in Mass, and I am still working and have a pretty high income
When you walk in the shadow of insanity, the presence of another mind that thinks and acts as yours does is something close to a blessed event. -Robert Pirsig, Zen and the Art of Motorcycle Maintenance