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Bond Fund - A bond fund is a mutual fund made of monies endowed in multiple of bonds or other debt securities. They are interest-bearing certificates that identifying a debt to a public or private corporation When you purchase a bond you are advancing money to the issuer, usually a company, for a specified length of time. Consider bonds to be more conventional than stocks, but the best portfolios contain a combination of investments appropriate to your goals. The investor earns more of a return, but takes a greater risk in that the company may lose money on its ventures causing a default. |
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