Junk bonds tend to be more volatile and higher yielding than bonds with higher quality ratings.
Junk bond funds generally seek high returns and tend to be one of the riskier bond fund investments. An agreement calling for an investor to invest a specific amount in a fund over a defined period in order to qualify for reduced sales charges. The reduced sales charge may apply to an individual fund or to all the funds operated by a single investment management firm. The Lipper Analytical Indices are equally weighted indices of typically the 30 largest mutual funds within their respective investment objectives. Returns are adjusted for the reinvestment of capital gains distributions and income dividends.