Bond funds are typically categorized by the issuer or the duration of the underlying bonds:
Buying bond funds is an efficient way to gain exposure to the fixed-income market without the complexity of managing individual bonds. Unlike individual bonds, bond funds provide instant diversification and professional management but do not have a fixed maturity date or a guaranteed return of principal. 1. Select Your Investment Platform how to buy bond funds
Before buying, use a screener to compare funds based on these critical factors: Bond funds are typically categorized by the issuer
: Invest in U.S. Treasuries or agency bonds. These are considered the safest but generally offer lower yields. Select Your Investment Platform Before buying, use a
: Opening an account directly with a provider like T. Rowe Price may let you buy their mutual funds without extra broker fees.
: Invest in debt issued by companies. Investment-grade funds focus on stable companies, while high-yield (junk) funds offer higher returns for significantly more risk.