Investing with a broker may also involve sales charges and commissions. And although load funds also involve sales charges, no load funds do not. Bond funds, meanwhile, enable you to purchase a more diversified portfolio of bonds than you otherwise might be able to afford. Bond funds may also reduce your overall investment risk. A diversified portfolio of stocks and bonds can help smooth out volatility and produce a more balanced investment.
Investors generally rely on themselves or brokers to monitor their individual bonds.
Experienced managers monitor bond fund portfolios with an emphasis on maximizing returns and minimizing risk. Convenience and Accessibility. The sale of individual bonds requires finding a buyer on the open market. A Word About Income. Bond funds are well suited for investors who want steady income, perhaps to supplement other retirement assets.