Bond funds are investment vehicles that pool money from multiple investors to purchase a variety of bonds. These funds typically invest in government, municipal, or corporate bonds, providing investors with a way to earn interest income while diversifying their portfolios. The value of bond funds can fluctuate based on interest rates and the credit quality of the underlying bonds. Investing in bond funds can be a more accessible option for individuals who may not have the resources to buy individual bonds. They are managed by professional fund managers who make decisions about which bonds to buy and sell, aiming to achieve the best returns for investors.