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TYPES OF BOND FUNDS
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Almost every kind of bond can be found in one bond fund or another. Bonds of each type are usually packaged together. For example, a fund may include only corporate bonds or international bonds. One reason bonds of the same type are packaged together is that they have similar objectives and features.

Corporate bond funds are made of bonds issued by companies in the private sector.

Zero coupon bond funds are pools of zero coupon bonds, which do not pay interest currently. Instead, they realize income only when they mature.

International bond funds invest in debt securities of governments and corporations of other nations.

Convertible securities funds invest in debt securities that can be converted into stock.

Let's look at some more types of bond funds.




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