Bond Mutual Funds

Because timing the bond market is so tricky, you're probably better off doing your bond investing through bond mutual funds. Bond funds are available in a variety of risk levels and with a variety of returns. Funds that specialize in shorter-term funds are safer than those that specialize in longer-term funds. As with other investments, safer bond funds mean less of a return. Ask for a bond fund prospectus and check out the companies represented in the portfolio before making any decisions about bond fund investing.