Tax Law Term “Bond Fund“
A mutual fund which purchases corporate, municipal, or government debt obligations for investment designed to produce a steady income. Such funds are divided into taxable or nontaxable funds depending on the taxation of the interest income derived from the bonds held for investment.
A bond fund or debt fund is a fund that invests in bonds, or other debt securities. 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. Wikipedia
A bond fund is a fund invested primarily in bonds and other debt instruments. The exact type of debt the fund invests in will depend on its focus, but investments may include government, corporate, municipal and convertible bonds, in addition to other debt securities like mortgage-backed securities (MBS). investopedia
Whether you are a beginning investor or a professional money manager, understanding how bonds funds work is essential to investing success, as is the case with stock funds. This knowledge can help you understand other areas of finance and economics, such as interest rates, economic indicators, and how they are all interrelated. thebalance.com