What is the primary investment focus of a corporate bond fund?

Stocks Real Estate Corporate Bonds Commodities

Why are corporate bond funds becoming increasingly popular for businesses?

Higher interest rates than bank loans Lower associated costs compared to bank loans Greater flexibility in repayment terms Tax advantages for businesses

Which type of investor is considered ideal for corporate bond investments?

High-risk takers seeking maximum returns Risk-averse individuals looking for high returns Investors with short-term financial goals Individuals seeking tax-free investment options

What is a key difference between corporate bonds and government bonds in terms of risk?

Corporate bonds offer lower interest rates Government bonds have higher default risks Corporate bonds carry higher credit risk Government bonds are less regulated

Which of the following is NOT a benefit of investing in corporate bond funds?

Higher returns compared to other debt instruments High liquidity allowing easy conversion to cash Security due to the financial obligation on the company Guaranteed returns with no risk of loss

How do corporate bond funds generate returns for investors?

Through dividends paid by the companies issuing the bonds By investing in high-growth startups Through fluctuations in the NAV of the fund based on bond values By earning interest on the principal invested