Interest rates have surged since early May, and many experts think they'll keep rising. So how should bond investors react?

Dumping all your bonds is one option. But especially for people wary about the risks of stocks, "fixed income still has a place," Jonathan Mackay, senior fixed-income strategist at Morgan Stanley Wealth Management, told The Wall Street Journal

"You just have to be much more tactical and nuanced."

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The main move should be a shift to short-term bonds, which don't fall as much in value as long-term bonds do when rates rise, The Journal noted.

"If your portfolio consists solely of long-term bond funds because you have been trying to maximize yields, it's time to get into a more balanced portfolio with short and intermediate bonds or bond funds," Bob Auwaerter, head of fixed income at Vanguard Group, told The Journal.

Investors can also opt for bond funds in different corners of the market.

For example, floating-rate bank loan funds and non-traditional bond funds, which have more flexible investment strategies, outperformed other categories between early May and early July, according to The Journal.

The bank loan funds dipped 0.5 percent, and the non-traditional funds fell 2.3 percent.

As for interest rates, Mike Crofton, CEO of Philadelphia Trust Co., predicts the 10-year Treasury yield will reach 5 to 6 percent within 18 to 24 months, up from 2.63 percent late Monday.

"It is our opinion that interest rates have begun their ascent, that the Fed will eventually lose control of interest rates," he told CNBC. The move will feed on itself as retail investors sell their bonds, Crofton says.

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