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Learn About Mutual Funds

A mutual fund is an investment that pools together multiple stocks, bonds, and other securities to perform as one investment. Regardless of your investment goal, mutual funds have the potential to play an important role in every portfolio.


What are bond funds?

For many investors, a bond fund is a more efficient way of investing in bonds than buying individual securities.

All Mutual Fund Lessons

In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.