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Bond Mutual Funds |
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A bond mutual fund is an investment company created to manage pool of investments also called portfolio consisting of individual bonds. Investors purchase shares in fund and share represents proportional ownership in pool of bonds including mutual funds portfolio. Bond mutual funds have several features that distinguish them from individual bonds. An individual bond has maturity date, fixed interest payments, bond mutual fund which manages portfolio of different bonds. Bond mutual funds diversification reduces risk and share price. |
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