Bond Funds - invest in government and corporate bonds (debt obligations). These funds focus on the following bond types:
U.S. Government Bonds - seek high income with maximum safety by investing exclusively in notes and bonds issued by the Federal Government, which include Treasury issues and Ginnie Mae securities with maturities of one year or more.
Risk Level: 1 to 3.
Corporate Bonds - are funds that seek high current income, rather than growth, through investments in non-tax-exempt, fixed-income securities. These securities are primarily corporate obligations with maturities of one year or more.
Risk Level: 1 or 3.
Municipal Bonds - aim for current income by investing in a broad range of tax-exempt bonds issued by states, cities and other local governments. The interest obtained from these bonds may be passed through to shareholders free of federal, state, and local income tax.
Risk Level: 1 to 3.
Global Bonds - invest in foreign and domestic bonds primarily for income. They profit not only from the growth and income of their securities, but also currency transactions and fluctuations.
Risk Level: 1 to 4.
Flexible Bonds - invest in both Corporate Bonds and U.S. Government Bonds of varying maturities to achieve high income, as well as some growth, with very low risk. They sometimes hold International Bonds as well.
