What Are Bond Funds?

I would like to know the difference between bond funds, income funds and gilt funds. Which of these funds would be ideal for an investment of 2 years?
-Navin

Any mutual fund that invests only in bonds is called a bond fund. Hence, both income funds and gilt funds are types of bond funds. While gilt funds invest only in government securities, income funds invest in private company securities as well. Gilt funds as well as income funds can be of various types, depending on their maturity profile.

This article was originally published on February 06, 2012.