answersLogoWhite

0


Best Answer

The term corporate bond funds refers to a type of investment where the funds all come from corporate bonds. With the word bond in the name, it gives the impression that this would be a very safe choice for an investment. In fact this type of investment can be far more risky than stocks.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What does the term corporate bond funds refer to?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What mutual funds have the best ratings?

The mutual funds that have the best ratings include High Yield Bond, Short Term Bond, Long Term Bond, Small Growth, Financial, World Bond, Retirement, Large Growth, and Large Value.


What are corporate bonds issued for?

A corporate bond is a bond issued by a corporation for the purpose of raising funds and expanding the business. These bonds are usually long-term (i.e. at least one year) and generally offer a higher yield than some other investments. Corporate bonds carry a higher risk of default than other investments such as government bonds, depending on the given corporation and the state of the market.


What are gilt funds?

Gilt fund is a mutual fund that invests in several different types of medium and long-term government securities in addition to top quality corporate debt. Gilts originated in Britain. Gilt funds differ from bond funds because bond funds invest in corporate bonds, government securities, and money market instruments. Gilt funds stick to high quality-low risk debt, mainly government securities. Gilt funds originate from the requirement of investors to ensure higher safety levels for their invested money. Thus this scheme invests in instruments, which are generally considered to be safer than AAA grade investments. This scheme is ideal for investors who want higher safety levels for their investments and at the same time can obtain reasonable returns on their investments.


What are some low-risk short term investments?

There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.


What is the difference between a mutual fund and a bond mutual fund?

A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.

Related questions

What does the term bond funds refer to?

Bond funds refer to debt investments. Debt investments are mortgage securities and goverment. In other words it invested in some sort of debt.


What is the symbol for Vanguard Short-Term Corporate Bond ETF in NASDAQ?

The symbol for Vanguard Short-Term Corporate Bond ETF in NASDAQ is: VCSH.


What is the symbol for Vanguard Intermediate-Term Corporate Bond ETF in NASDAQ?

The symbol for Vanguard Intermediate-Term Corporate Bond ETF in NASDAQ is: VCIT.


What is the symbol for Vanguard Long-Term Corporate Bond ETF in NASDAQ?

The symbol for Vanguard Long-Term Corporate Bond ETF in NASDAQ is: VCLT.


What is the market cap for Vanguard Long Term Corporate Bond ETF VCLT?

As of July 2014, the market cap for Vanguard Long-Term Corporate Bond ETF (VCLT) is $849,008,000.00.


What is the market cap for Vanguard Intermediate Term Corporate Bond ETF VCIT?

As of July 2014, the market cap for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is $3,783,444,000.00.


What is the market cap for Vanguard Short Term Corporate Bond ETF VCSH?

As of July 2014, the market cap for Vanguard Short-Term Corporate Bond ETF (VCSH) is $8,243,319,000.00.


What mutual funds have the best ratings?

The mutual funds that have the best ratings include High Yield Bond, Short Term Bond, Long Term Bond, Small Growth, Financial, World Bond, Retirement, Large Growth, and Large Value.


What are corporate bonds issued for?

A corporate bond is a bond issued by a corporation for the purpose of raising funds and expanding the business. These bonds are usually long-term (i.e. at least one year) and generally offer a higher yield than some other investments. Corporate bonds carry a higher risk of default than other investments such as government bonds, depending on the given corporation and the state of the market.


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


What is meant by the term of a corporate brand?

The term corporate brand is an advertising practice where a product is known by the company name. An example is how we now refer to a tissue as a kleenex one of the manufacturers of tissues.


What are gilt funds?

Gilt fund is a mutual fund that invests in several different types of medium and long-term government securities in addition to top quality corporate debt. Gilts originated in Britain. Gilt funds differ from bond funds because bond funds invest in corporate bonds, government securities, and money market instruments. Gilt funds stick to high quality-low risk debt, mainly government securities. Gilt funds originate from the requirement of investors to ensure higher safety levels for their invested money. Thus this scheme invests in instruments, which are generally considered to be safer than AAA grade investments. This scheme is ideal for investors who want higher safety levels for their investments and at the same time can obtain reasonable returns on their investments.