A bond fund is a fund invested primarily in bonds and other debt instruments. The exact type of debt the fund invests in will depend on its focus, but investments may include government, corporate, municipal and convertible bonds, along with other debt securities like mortgage-backed securities.
Breaking Down ‘Bond Funds’
For investors interested in bonds, a Morningstar bond style box can be used to sort out the investing options available for bond funds. Investors should note that U.S. government bonds are considered to be of the highest credit quality and are not subject to ratings.
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Dave Kimbler is a financial advisor with forty-one years’ experience, and has been working in the investment and insurance industry since 1976. Dave focuses primarily on advising and managing assets for Kimbler’s clients.