Original Content: Business Upside
Investors interested in generating a steady stream of monthly income prefer investing in some bond funds that primarily invest in municipal, government, corporate, and convertible bonds and other debt instruments like MBS (mortgage-backed securities). A bond fund, also known as a debt fund, is a pooled investment vehicle and a better option than buying individual bonds securities. Bond funds are nothing but mutual funds that invest primarily in bonds. Most bond funds focus on certain types of bonds like government and corporate bonds with varying maturity lengths from short-term to long-term and intermediate-term. Other funds that seek high yield put the money in only the riskiest category of bonds. After the economic downturn in 2008, when interest rates were at an all-time low, nontraditional bond funds (NBF) started gaining popularity.