Bond Fund is a fund invested in bonds and also other debt instruments. The exact style of debt the pay for invests in will depend on its focus, but investments can sometimes include government, corporate, municipal and convertible provides, along with additional debt securities like mortgage backed securities. A bond fund is a fund that spends in bonds, as well as other debt stock options. Bond funds might be contrasted with stock options funds and money funds. Bond funds generally pay periodic dividends including interest payments about the fund’s underlying stock options plus periodic recognized capital appreciation.