: This measures how sensitive the fund is to interest rate changes. A higher duration means the fund's price will fall more sharply if interest rates rise.
Buying bond funds is an efficient way to gain exposure to the fixed-income market without the complexity of managing individual bonds. Unlike individual bonds, bond funds provide instant diversification and professional management but do not have a fixed maturity date or a guaranteed return of principal. 1. Select Your Investment Platform how to buy bond funds
: Invest in U.S. Treasuries or agency bonds. These are considered the safest but generally offer lower yields. : This measures how sensitive the fund is
: Invest in debt issued by companies. Investment-grade funds focus on stable companies, while high-yield (junk) funds offer higher returns for significantly more risk. Treasuries or agency bonds
: The annual fee charged by the fund. Because bond returns are often modest, high fees can significantly erode your total return.