A bond fund is a type of investment fund that primarily invests in various types of bonds, which are debt securities issued by governments, municipalities, or corporations. These funds pool money from multiple investors to purchase a diversified portfolio of bonds, aiming to provide regular income and capital preservation. Investors in bond funds typically receive returns through interest payments generated by the bonds held in the fund. The value of a bond fund can fluctuate based on interest rates, credit quality, and market conditions, making it important for investors to understand the risks involved.