Municipal Bond Funds

Simply put, a bond fund is a portfolio of investments in bonds. Often times, institutional investors or investment companies will put their assets in several different bonds. These may be in bonds across different industries, or they may be focused on one industry in particular - it all depends on the investment strategy of that specific portfolio.

Funds in general are seen as safer and steadier investments. Since the assets of the investors are spread across several different bonds, there is less risk in losing money. The downside is that the increase is not typically as explosive. However, that’s just the way it goes with investing - the higher the risk, the higher the possibility of a greater reward.