Famous What Is A Bond Fund 2023. Whether the fund’s mandate is broad or narrow, bond funds invest in many different securities, so it’s an easier way to achieve diversification even with a small investment. When you purchase a bond, you become the lender.

Here are his new favorite bets. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year. Web bond fund returns are highly dependent on the changes in general interest rates;