If you are considering investing in bonds, you may have also considered bond funds or may already be invested in bond funds. There are substantial differences between owning a bond fund and owning a portfolio of bonds.
A bond fund is comprised of numerous bond issues with varying maturities. When a bond in a fund matures, the fund manager will reinvest the proceeds in a new bond. As a result, there is no finite end date with a bond fund like there is with a bond. You are not guaranteed to get your principal back on a given date.
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