Funds — Why Buy Bond
Bond funds act as a streamlined way to own a collection of hundreds or thousands of bonds with a single purchase, offering and professional management that is often difficult for individual investors to achieve on their own.
You can sell shares of a bond fund daily at their current market price. Individual bonds can sometimes be difficult or costly to sell quickly on the secondary market. why buy bond funds
Most funds have low minimum investments (often $0–$1,000), whereas individual bonds frequently require $1,000 to $10,000 per bond, making it expensive to build a truly diversified portfolio. Bond funds act as a streamlined way to
Individual Bonds vs. Bond Funds: A Comparison | State Street Most funds have low minimum investments (often $0–$1,000),
Bond funds generally pay monthly distributions that can be automatically reinvested, whereas individual bonds typically pay interest only twice a year. 2026 Market Context