From 11:00PM PDT on Friday, July 1 until 5:00AM PDT on Saturday, July 2, the Shmoop engineering elves will be making tweaks and improvements to the site. That means Shmoop will be unavailable for use during that time. Thanks for your patience!
We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Bond Fund


A mutual fund that invests in—yep, you guessed it—bonds. Bond funds can be diversified (meaning that they invest in many different types of bonds), or they can be more specific, investing in, say, only in municipal bonds or other specific types of bonds.

Bond funds are considered more stable than funds that invest heavily in stocks, since bonds are less volatile. However, bonds also have a smaller potential for growth. Check out our section on investing for more on all that.