What advantages do bond funds offer?
Bond funds are a convenient way to invest in bonds and other debt instruments because they allow you to invest in a professionally managed pool of bonds and debt instruments. Bond funds offer all of the familiar conveniences of stock mutual funds, such as: Liquidity. You can buy and sell shares based on the fund’s net asset value, priced at the end of each trading day. Reinvestment of Dividends. If you do not depend upon your investment for regular income, you may choose to reinvest your dividends. Low Minimum Investment. Purchasing an individual bond can be expensive because of the size of the bond you may be required to purchase. You can invest in the Domini Social Bond Fund for $2,500. If you open your account as an IRA, the minimum is $1,500, and if you choose to use our Automatic Investment Plan the minimum is $1,500. If you open your account as an UGMA/UTMA, the minimum is $1,000 (Automatic Investment Plan is also available). Diversification. A bond fund invests in a large number
