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Bond Mutual Fund

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Bond mutual fund
A mutual fund which primarily or exclusively holds bonds.

Bond Mutual Fund
A mutual fund that invests exclusively in bonds. It pays dividends based on coupon payments and maturities of the bonds. A bond mutual fund tends to yield more than a money market or certificate of deposit, and it pays dividends more often than an individual bond. Bond mutual funds may be composed of convertible, corporate, treasury, mortgage, or municipal bonds, or some combination of the five. They may also be classified by average yield, or by length of time before maturity.


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It's interesting, as an aside, that many advisors use bond mutual funds as a fixed investment, when their value can shift significantly.
14 filing with the Securities & Exchange Commission, the manager of the world's biggest bond mutual fund applied to open its first ETF.
Just as important, the book tells readers how to build a diversified portfolio of stock and bond mutual funds and provides many helpful examples.
 
 
 
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