Bond fund


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Bond fund

A mutual fund that emphasizes income—consistent with risk, rather than growth—by investing in corporate, municipal, or US government debt obligations, or some combination of them.

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.

bond fund

An investment company that invests in long-term debt securities. A bond fund may restrict its investments to certain categories of bonds, such as corporate, municipal, or foreign bonds, or it may hold many types of bonds. See also corporate bond fund, municipal bond fund.

Bond fund.

A bond mutual fund sells shares in the fund to investors and uses the money it raises to invest in a portfolio of bonds to meet its investment objective -- typically to provide regular income.

The appeal of bond funds is that you can usually invest a much smaller amount of money than you would need to buy a portfolio of bonds, making it easier to diversify your fixed-income investments.

Unlike individual bonds, however, bond funds have no maturity date and no guaranteed interest rate because their portfolios aren't fixed. Also unlike individual bonds, they don't promise to return your principal.

You can choose among a variety of bond funds with different investment strategies and levels of risk. Some funds invest in long-term, and others in short-term, bonds. Some buy government bonds, while others buy corporate bonds or municipal bonds. Finally, some buy investment-grade bonds, while others focus on high-yield bonds.

References in periodicals archive ?
Global Banking News-August 22, 2019-Eventide lowers management fees on Limited-Term Bond Fund
M2 EQUITYBITES-August 22, 2019-Eventide lowers management fees on Limited-Term Bond Fund
BANKING AND CREDIT NEWS-August 22, 2019-Eventide lowers management fees on Limited-Term Bond Fund
4 March 2019 - Shareholders of Eaton Vance Municipal Bond Fund II (NYSE American: EIV) have approved the merger of EIV into Eaton Vance Municipal Bond Fund (NYSE American: EIM), the firm said.
These are as follows:--Florida Municipal Investment Trust 0-2 Year High Quality Bond Fund at 'AAAf'/'S1'; --Florida Municipal Investment Trust 1-3 Year High Quality Bond Fund at 'AAAf'/'S2'; --Florida Municipal Investment Trust Intermediate High Quality Bond Fund at 'AAAf'/'S3'; and --Florida Municipal Investment Trust Broad Market High Quality Bond Fund at 'AAf'/'S4'.
in the 1-Year Return-Balanced Fund Category (Peso Denominated); the Sun Life Prosperity Bond Fund, Inc.
If you already hold mutual funds and you're pleased with the results, you might want to see if the fund company has a high-yield fund, an emerging markets bond fund, and so on.
The corporation, as per the media statement, will make a contribution of almost $325 million in the new fund, called the Green Cornerstone Bond Fund, and it will buy green bonds to be floated by worldwide banks, with focus on the emerging marketplaces.
Winners of the first CFA Society Philippines Best Managed Funds of the Year Awards were also recognized at the conference: ALFM Peso Bond Fund, under the Bond Funds (Medium-Term Peso) category; UB Gold Dollar Fund, for Bond Funds (Medium-Term Dollar); Odyssey Peso Bond Fund, for Bond Funds (Long-Term Peso); CBC Dollar Fund , for Bond Funds (Long-Term Dollar); SB Peso Asset Variety Fund, for Balanced Funds (Peso); and Philequity Fund, for Equity Funds (Peso).
The African Development Bank (AfDB) has approved a seed equity capital investment of Sh2.5 billion ($25million) into the African Domestic Bond Fund (ADBF).
Plus, although American Funds has been known for its equity products, its bond funds are taking center stage today: The Bond Fund of America (ABNDX) and Intermediate Bond Fund of America (AIBAX) drew $334 million and $213 million, respectively, in April, "indicating that American Funds is joining the battle for investors' fixed-income money," Lamy points out.