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The Basics |
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Bond Mutual Funds
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Bond funds are generally designed to seek high current
income by investing in debt obligations issued by corporations,
municipalities or the U.S. government. Bonds differ in maturities
and credit ratings, both of which will affect the risk/reward potential
of a fund.
Bond mutual funds are subject generally to interest rate, credit, liquidity and market risks to varying degrees. These risks are described in the fund's prospectus.
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