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Investing in bond funds? Keep these five factors in mind

Updated : August 31, 2018 02:22 PM IST

The portfolio of bond funds comprise investments in instruments such as treasury bills, commercial papers, government securities, certificate of deposits and bonds.
A change in rating issued by rating agency also impacts bond prices. A rating upgrade pushes up bond prices and a downgrade pulls down prices.
If you are comfortable taking extra credit risk for extra returns, do consider credit risk funds. As the name suggest, these funds invest in bonds that carry high credit risk. These schemes are expected to reward you with extra returns for the extra risk you took.
Investing in bond funds? Keep these five factors in mind
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