In other lessons, we talked about using various types of funds that can add value to a portfolio. We covered growth funds and value funds, focused and flexible funds, even sector funds. But let's not forget about bond funds.

We'll talk about more than your grandmother's T-bills here; we'll explore high-yield bond funds, bank-loan funds, and Treasury Inflation Protected bond funds. These funds are designed to stamp out some of the interest-rate or inflation risk that may lurk elsewhere in your portfolio. You can also buy them to pick up some extra return.

Next: High-Yield Bond, or Junk Bond, Funds >>