In the previous article we had seen about stock (equity) mutual funds in detail. In this article, lets continue from there and explore the various types of bond mutual funds.
Bond mutual funds invest in a type of fixed income securities called bonds. Investing in bonds is generally considered less riskier than investing in stocks as they are less volatile and provide regular income in the form of interest payments. Hence bond mutual funds are quite popular among the risk averse investors. (Individuals who don’t like to take too much risk). Bond funds constituted about 25% of the total mutual fund assets in the US in 2011 (year end) thereby being the second most preferred type of mutual funds after equity mutual funds. 
In this article, lets see about the various types of bond mutual funds. Continuing with our previous tradition we will do so by asking a few questions.
Does the bond fund invest in domestic bonds or does it invest in bonds of foreign companies?
Depending on which we have
1) Domestic bond mutual funds
2) Global/World bond mutual funds More »