What are the benefits of investing in a bond fund?

A bond fund is also popularly known as a debt fund. From an investors’ perspective, a bond fund is a better way of investing in bonds without buying the underlying individual bond securities. The investors can generate a steady income stream by indirectly participating in the underlying bond securities’ interest payments.

What are the best bond funds?

One of the most popular bond ETFs in the world is AGG, which has over $80 billion in assets under management. This ETF passively tracks the Bloomberg US Aggregate Bond Index, which represents nearly the entire investable U.S. fixed-income market.

What is a bond fund?

The term “bond fund” refers to the investment pool usually traded as an exchange-traded fund (ETF) or mutual fund. This type of fund typically invests in fixed-income securities, such as corporate bonds, government bonds, junk bonds, money market instruments, etc.