pWhile a bond is a debt security that represents the authorized issuerrsquo;s obligation to repay the principal plus interest of the debt, a bond fund is a pool of money that invests in bonds. Most bond funds pay higher dividends than CDs or money market funds, and are considered less risky than stocks. Thatrsquo;s why many financial planners recommend having these types of bond funds within investment portfolio, especially as we age./p