Which type of mutual fund invests primarily in high-yield, high-risk corporate bonds?

Question

Quizplus · Accepted Answer

Junk bond funds invest primarily in high-yield, high-risk corporate bonds, also known as non-investment grade bonds or speculative bonds. These bonds typically offer higher returns than investment grade bonds, but come with higher risk due to the increased likelihood of default. Junk bond funds can be a good option for investors seeking higher returns, but they should be aware of the increased risk involved.

Which Type of Mutual Fund Invests Primarily in High-Yield, High-Risk