• Learn about investing
• Investment types explained
• Stocks and shares (equities)
• Funds
• Corporate Bonds
• Investment Trusts
• Exchange Traded Products
• Gilts
• Bonds
• Complex investments

Corporate Bond Funds

Corporate Bond Funds – what are they?

A Corporate Bond is essentially an IOU from in incorporated company to an individual or corporation who has lent it money. In return for the loan, the investor receives an amount of interest from the company for the period of the loan's life. If held until the end of the loan's term, the amount should be repaid in full.

A fund is an investment vehicle made up of different types of investments chosen by the fund's manager.

A Corporate Bond Fund is simply a fund which invests in Corporate Bonds. It allows you to spread your overall investment risk by investing in a number of different Corporate Bonds expertly chosen by a professional fund manager.

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