A bond fund is a mutual fund which invests in bonds, typically with the objective of providing stable income. These funds may invest in a specific type of bond, such as corporate, government, high-yield, municipal or zero-coupon, or they may invest in all or some bond types. Bond funds, unlike bonds, do not have a maturity date. When you purchase a bond and hold it until maturity, you lock in your return at the time of purchase (unless the bond issuer defaults on its obligations). With a bond fund, the value of your investment is likely to fluctuate, and there is a risk of losing value in a rising interest rate environment when yields rise, but the price of bonds fall. The greater the duration of the bond fund, the greater this interest rate risk.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by clicking here. Please read the prospectus carefully.
