: 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.
: Opening an account directly with a provider like T. Rowe Price may let you buy their mutual funds without extra broker fees. how to buy bond funds
: Check the average credit rating of the bonds in the fund (e.g., AAA, AA, BBB) to understand default risk. 4. Place the Order : Invest in debt issued by companies
Bond funds are typically categorized by the issuer or the duration of the underlying bonds: how to buy bond funds
: 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.