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The Basics  |   Bond Mutual Funds


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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