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Corporate Bond Fund
(redirected from Corporate Bond Funds)

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Corporate Bond Fund
A mutual fund consisting only of corporate bonds. A common stock fund may be high-risk if it invests primarily in junk bonds, or it may be low-risk if it invests in established investment-grade bonds.

corporate bond fund
An investment company that invests in long-term corporate bonds and passes the income from these securities to its stockholders. Although these funds vary in value with changes in long-term interest rates, they usually provide a current return in excess of money market funds. Corporate bond funds are of interest primarily to investors seeking high current income or to those betting on a substantial fall in long-term interest rates.


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Many corporate bond funds have posted returns of in excess of 40 per cent over the last eighteen months as yields have fallen but obviously there is only so far down these yields can go.
5-5% per year is more realistic from corporate bond funds now plus, perhaps, another 1% or so for capital growth.
Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer.
 
 
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