It is designed to provide a moderate level of current income from dividend-paying stocks and may include corporate or government bonds. Holdings may be from domestic or foreign companies, according to the fund's objective. A bond mutual fund is an investment company that owns corporate, municipal or government bonds in a professionally-managed, diversified portfolio. It is designed to provide current income and may also include common or preferred stocks or other securities. Holdings may be from domestic or foreign issuers, depending on the investment objective of the fund.
Income is a secondary objective.
Rising income is often a key objective. Income may be exempt from federal or state tax. Portfolios may contain bonds of varying quality ratings according to the objective of the fund. Bond funds are suitable for income-oriented investors. Dollar Cost Averaging with Mutual Funds Dollar cost averaging is a method of steadily increasing the amount of mutual fund shares you own by investing a fixed dollar amount at regular intervals.