What Are Mutual Bonds?

by Spencer Hendricks ; Updated April 19, 2017
Every investor's dream is to end up with a large profit return.

The art of investing money takes a great deal of research and skill. The process can be very overwhelming to a beginner. Thankfully, many options exist for smart investors in the form of bonds.

Types

Bonds come in many forms, including local or state government-issued municipal bonds, company-issued corporate bonds and U.S. government bonds.

Function

Mutual bonds are considered a lower risk than other bond types, in the sense that they earn the investor a profit in addition to protecting the principal investment.

Benefits

Aside from the low risk involved, a big plus for mutual bonds is the diversification they offer. Instead of making an investment in individual bonds, mutual bonds will also invest in other debt securities at the same time, without having to buy bonds from several different companies.

Risks

Despite being less at risk than other types of bonds, even mutual bonds are not without danger. Like any other bond, they are subject to problems with credit and interest rate changing for the worse after the investment has been made.

Considerations

Keep in mind that mutual bond funds typically come with a funds manager, which will result in more money required on the part of the investor.

Video of the Day

Brought to you by

References

About the Author

Spencer Hendricks has written for various well-regarded blogs. His work has appeared in the "Kickapoo Prairie News" and online at sprayahen.com and Spencer Vs. The Food Industry. He is currently in the process of obtaining a degree in Web development.

Photo Credits

  • Image by Flickr.com, courtesy of ??? ???
Cite this Article | raiffeisen-cards.ru A tool to create a citation to reference this article Cite this Article

Related pages


belks creditwhat does reconciling a checking account meandell dfs pay onlineredeemable common stockadvantages and disadvantages of 401kcoupon payment formulaconvertible redeemable preferred stockwhat is the difference between subsidized and unsubsidized loansmaryland eviction lawsfiling form 4868 electronicallyadp total pay card feessubsidized housing rent calculatorunit trusts investopediahow to transfer prescription to cvsdeductible definition car insurance3rd party liability insurancedo you need probate if your husband diesmarginal tax rate formulapartial balance sheet stockholders equitycalculate payoff amount on mortgagemarried withholding at a higher single rateequation for marginal revenuegeorgia income tax deductionswhat is cafe 125 on w2definition of grantoroverweight and underweight stockshow to sell jewelry to a pawn shopus treasury bond redemptioncigna hmo vs ppomerge credit cardssort code for us banksscholarship jamaicabuyers remorse cartuition fees rebate in income taxbarber scholarshipsforbearance on mortgagecalculation of net worth from balance sheetsemi annual bond valuationform 1099 int definitionebt alabama applicationsurvivor va benefitsrental laws in utahwestern union financial services inc englewood coloradohow to claim lottery anonymouslysample letter of greetingspcu meaningh&r block utahfica oasdi eedoes a foreclosure affect your creditwalgreens pharmacy educational assistance programencroachment real estatewhat does ach debit stand forwhere to cash a cashier checketrade transfer to bank accountny dmv sales taxstudent loan debt divorcehow to become a tax preparerare insurance deductibles tax deductibledouble insurance coveragehow to calculate capital expendituresnj landlord responsibilitiesjcpenney credit card paymentall inclusive trust deedconverting yearly salary to hourlynew york catholic high schoolschristian debt consolidation companiesnyc deed recordingare royalties passive incomecapm componentsaccruals and deferred income balance sheetepo versus ppopodiatrist visitreinvested dividendsequifax credit report by mailbanks that refinance timesharescalculating operating income formulaw2 section 125