A bond fund is a collective investment that invests in company bonds (a form of debt finance) and other fixed interest securities such as government bonds (gilts). Characteristics of bond funds include:
- Generate an Income Yield - they provide investors with regular interest payments which you can be payable monthly, quarterly, half yearly or annually depending on the fund.
- They are generally lower risk than equity funds.
- They have the potential to provide competitive levels of interest together with some capital growth although this will depend on the fund objective.
To help you make a more informed decision, it is a good idea to shop around and compare a range of funds to make sure you choose one that is going to fulfil your financial goals – Click on the link below and use our comparison tables to compare a range of deals: