Definitions for "Bond funds"
These mutual funds have portfolios primarily made up of corporate, municipal, or federal government bonds. Bond funds are considered income funds because they often pay out dividends. Many of these funds are tax-free.
Bond Funds are Mutual Funds that invest primarily in Bonds. They provide Diversification by investing in a variety of Bonds according to guidelines set in the funds' Prospectuses. Bond Funds are usually categorised by the types of Bonds they invest in, for example: government Bond Funds, corporate Bond Funds, international Bond Funds, and municipal Bond Funds. As with individual Bonds, the value of Bond Funds typically falls when Interest Rates rise, and rises when Interest Rates fall. Also a Bond Fund's dividends will vary. Bond Funds are not insured, and involve risk to Principal.
Mutual funds that invest in bonds issued by municipalities, corporations, and the U.S. government and its agencies. Bond mutual funds do not mature and are not guaranteed, although some of the individual bonds they invest in may be.
Resources derived from issuance of bonds for specific purposes and related Federal project grants used to finance capital expenditures.