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URL:  http://boards.fool.com/but-buying-a-bond-fund-is-not-an-easy-way-to-buy-27838017.aspx

Subject:  Re: Bonds vs. Bond Funds, Yet Again Date:  7/25/2009  8:24 PM
Author:  knighttof3 Number:  28288 of 35392

But buying a bond fund is NOT an easy way to buy bonds. It is merely an easy way to buy shares of an investment company that invests in bonds.

Here is my understanding: if I buy a bond fund, the company will pass on most of its income from its bond holdings onto me (minus management expenses), since I am the shareholder (in the bond mutual fund or bond ETF). The NAV of the fund will depend on the current market price of the bonds it holds. Buying a broad ETF such as BND instead of a single bond, I could spread my risk (may not minimize/maximize it, just spread it).
Do you find any of these statements untrue?
Bond funds may not be ducks but for a defensive investor (amateur, with minimal time for research) such as me, they quack and walk sufficiently like bonds.
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