Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Are Bond Funds?

By Adam Levy – Updated Apr 9, 2025 at 9:20AM

Key Points

  • Bond funds enable easier, diversified bond investment with a lower cost than individual bonds.
  • Different bond fund types cater to varying risk levels, from safe government bonds to high-yield junk bonds.
  • Total bond fund performance should be assessed by considering both interest payments and NAV changes.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.