answersLogoWhite

0

How do funds differ from bonds?

User Avatar

Anonymous

16y ago
Updated: 8/16/2019

With a bond, you are lending money to a company or a unit of government for a fixed period of time for a fixed rate of interest. With a fund you are giving your money to a particular individual to invest for you. That person will charge you a certain percentage of your money to invest it for you whether or not the value of your money increases or decreases. You may make money, or you may go broke investing in a mutual fund.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

What is always true about investment bonds?

Individual bonds and bond funds are two very different animals (see Comparing Bonds and Bond Funds) Understanding how bond funds and individual bonds differ will help you assess which is the best investment option for you


How do the various types of mutual funds differ?

Stock, bond, and hybrid funds invest in long-term securities, and as such are known as long-term funds. Hybrid funds invest in a combination of stocks, bonds, and other securities


How does a hedge fund differ from a fund of funds?

A hedge fund is an investment vehicle that can invest in equities, bonds, commodities, currencies, optiones, futures, and non-traded companies, among other instruments. A fund of funds is an investment vehicle that invests in a portfolio of hedge funds (or other funds).


Are bonds the same as mutual funds?

No, bonds and mutual funds are different types of investment tools. Mutual funds are made up of a variety of stocks, while bonds are not made up of stocks.


Are typically comprised of a mix of and . AStocks bonds index funds BBonds index funds mutual funds CMutual funds stocks bonds DStocks index funds bonds?

The correct answer is C: Mutual funds typically comprise a mix of stocks and bonds. These investment vehicles pool money from multiple investors to purchase a diversified portfolio, which may include various asset classes, primarily stocks and bonds, to achieve a balanced risk and return profile.


What are the different options available for investing in bonds?

The different options available for investing in bonds include government bonds, corporate bonds, municipal bonds, and bond funds. Government bonds are issued by the government, corporate bonds are issued by companies, municipal bonds are issued by local governments, and bond funds are investment funds that pool money from multiple investors to invest in a diversified portfolio of bonds.


Are mutual funds insured Are municipal bonds insured?

Neither Mutual funds nor municipal bonds are insured. You can however purchase insurance on them


What do corporate bond funds own?

Corporate bond funds invest in a combination of corporate debt, U.S. treasury bonds, or other federal bonds


What was the source of wartime funds for the union?

The sale of government bonds was a source of wartime funds for the union.


Where can you find information on bond funds?

You may find information on bonds funds all over the web. You may also ask a local accountant about bonds information. Many sites hold information about bond funds.


What are infrastructure bonds?

Bonds issued by a local government to get funds that will be used for infrastructure in a Real Estate development


Onced formed how are cordanite covelent bonds differ from other covelent bonds?

Once formed there is NO difference from other covalant bonds. Coordinate covalent bonds only differ from other covalent bonds because a single element donates all the electrons that are to be shared.