Individual bonds are viewed by some as more secure than bond funds, which have fluctuating monthly income payments. The biggest upside is that most individual bonds have monthly, quarterly, or semi-annual fixed income payments.
Individual bonds are managed by the investor, who must remain current with market changes to make wise investments. Much time and energy is needed to manage individual bonds.
Conversely, bond funds are typically managed by skilled investors. The investors look for bonds with the most promise.
(Image via Flickr)