Bonds mature. Most bond funds do not. Corporate and treasury bonds are usually issued in denominations of $1000. Municiple bonds are issued in denominations of $5000. If you don't have enough money for a bond,I'd stick with the money market. When beginning a bond portfolio, start with excellent quality. I'm prejudiced and opinionated, but I'd consider a bond fund only if I wanted to add to my portfolio some bonds I couldn't buy individually. Examples might be foreign bonds, or junk bonds. If you have $5000 in bonds and one defaults, that is a major blow to your portfolio. If you have $500,000 in bonds and one defaults it is probably not that big a deal. A treasury bond fund? Why? Buy the individual treasury assuming you have at least $1000 to invest, and get it at auction through Treasury Direct. If you have a fund, there will be annual expenses and an annual 1099. If you have a bond, there will be an annual 1099, but no expenses. You own it until it matures. Best wishes, Chris
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