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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.

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