Definition of a Short-Term Bond Fund A short-term bond fund is a fund that invests in bonds with maturities of less than five years. Investment bonds are life insurance policies where you invest a lump sum in a variety of available funds. more. Some investment bonds run for a fixed term, others have no set investment term. The latter will also comply with local, state and federal laws and duties. Corporate bonds can be grouped into two categories: investment-grade bonds and high-yield bonds. Higher credit rating, lower risk, lower returns. Typically, stocks and bonds do not fluctuate at the same time. Bond Rating Definition. An arbitrage bond is a bond any portion of the proceeds of which is expected to be used to buy (or to replace funds used to buy) higher yielding investments. investment bond synonyms, investment bond pronunciation, investment bond translation, English dictionary definition of investment bond. Define investment bond. Deciding on the appropriate mix of stocks and bonds in your portfolio is a function of your time horizon, tolerance for risk, and investment objectives. Government Bond: A government bond is a debt security issued by a government to support government spending. Fiduciary Bond Types, Costs. Many people invest in both stocks and bonds to diversify. Investment grade. A bond is treated as an arbitrage bond if the issuer intentionally uses any part of the proceeds of the issue in this manner. Investing in bond funds. A bond rating is a grade given to bonds that indicates their credit quality. Investment bond definition: a single-premium life-assurance policy in which a fixed sum is invested in an... | Meaning, pronunciation, translations and examples A bond is considered investment grade or IG if its credit rating is BBB- or higher by Fitch Ratings or S&P, or Baa3 or higher by Moody's, the so-called "Big Three" credit rating agencies.Generally they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them. Bond funds take money from many different investors and pool it all together for a fund manager to handle. Some of the common types of fiduciary bonds include: Personal Representative Bond – This bond reassures the parties invested and connected to an estate that the fiduciary will manage the estate affairs in a responsible and ethical manner. Any entity can issue short-term debt, including governments, corporations, and companies rated below investment grade . 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