 | The examples and perspective in this article may not represent a worldwide view of the subject. (September 2010) |
A bond fund or debt fund is a fund that invests in bonds, or other debt securities.[1] Bond funds can be contrasted with stock funds and money funds. Bond funds typically pay periodic dividends that include interest payments on the fund's underlying securities plus periodic realized capital appreciation. Bond funds typically pay higher dividends than CDs and money market accounts. Most bond funds pay out dividends more frequently than individual bonds.[2]
- ^ U.S. Securities and Exchange Commission on Bond Funds
- ^ CNN Money 101 - Types of Bonds Archived November 23, 2006, at the Wayback Machine