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Why are bonds funds a good investing decision? Bonds as a whole, and the bond mutual fund, are less risky than stocks. Some investors find that their stock funds climb faster, and increase faster than the bonds. The bond funds can reduce your risk in your overall portfolio, by having the following investment vehicles: Stocks, 60%, bonds 20%, and l0% cash, This is a low risk investment in bonds, and include both the corporations and municipals bonds. High-Yield Corporate Bond Funds are the more risky can are called the lower-quality or "junk bonds". They are much like risky stocks, but when you buy them in smaller quantities, they help give you the diversification you need in your portfolio, and also can offer some additional income to your portfolio, and increase your retirement nest egg as well. U.S. Government Bond funds give you the the security, and investing safety in credit terms, because they invest in the securities in governmental agencies, and securities issues by the U.S. Treasury. Their prices change with changes in the interest rates. Municipal Bond Funds

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