Bond Funds - Why Buy

Most funds have low minimum investments (often $0–$1,000), whereas individual bonds frequently require $1,000 to $10,000 per bond, making it expensive to build a truly diversified portfolio.

Bond funds generally pay monthly distributions that can be automatically reinvested, whereas individual bonds typically pay interest only twice a year. 2026 Market Context why buy bond funds

Bond funds act as a streamlined way to own a collection of hundreds or thousands of bonds with a single purchase, offering and professional management that is often difficult for individual investors to achieve on their own. Most funds have low minimum investments (often $0–$1,000),

Current outlooks from institutions like Fidelity and Charles Schwab suggest: whereas individual bonds frequently require $1

Individual Bonds vs. Bond Funds: A Comparison | State Street