A bond fund is a mutual fund which is made up entirely on bonds. There are a variety of mutual bond funds to choose from. A municipal bond fund, corporate bond fund, short-term bond fund and more to choose from. Consult with your broker about the different mutual bond funds which are available with their firm. The unit price of the mutual bond fund will be influenced by interest rates and fluctuate with interest rates.
Bond funds do have a maturity like bonds outside the mutual bond fund.
If it is not in your best interest, how to avoid it. Bonds are issued by businesses and public organization, which are looking for outside investors to help pay for real estate, equipment, highways, bridges and a wide variety of needs. Basically think of a bond as an I.O.U., there are a variety of different bonds. The bond provides a fixed stream of income. This includes the interest payments and also full repayment of principle at maturity date stated.