A bond fund is an investment fund that primarily invests in bonds and other types of debt securities. It pools money from various investors to purchase a diversified portfolio of bonds, which can be issued by governments, corporations, or other entities. Bond funds are often chosen for their income potential and relative safety compared to stocks, though they are not risk-free. The value of a bond fund depends on the value of its underlying bonds, which can fructify due to various factors.
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