With individual bonds and bond funds, you need to understand both investments. Yes, you can buy an individual bond, hold it until maturity, and get all of your principal back plus the promised interest. With a bond fund, the net asset value will fluctuate with the interest rate market, and, when you sell your shares, you may or may not get your principal back, but, in some cases, you may get back more than your principal, and you may earn more interest than the individual bond has paid. Both investments have advantages and disadvantages. Personally, I prefer to invest in bond funds.
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