Government bonds

What are government bond funds?Government Bond funds focus on investments in fixed-income securities issued by governments rather than those issued by companies (corporate bonds). Investors turn to government bond funds to diversify portfolios and capitalise on the security offered by government-backed debt instruments - such as treasury bonds issued by the US government, or gilts which are issued by the UK government. While these funds are deemed to be less risky than most other assets, bond prices can still rise and fall and there will be interest rate risk and duration risk to consider.