Our Funds

Bond Funds

While it’s true that bonds probably won’t produce the type of long-term growth potential typically associated with stocks, they offer other potential advantages, such as current income and portfolio diversification.

To help meet investor’s income and diversification needs, BB&T offers longer- and shorter-term bond funds, as well as taxable and tax-exempt bond funds.

BB&T Bond Funds:

-- select fund -- BB&T Total Return Bond Fund BB&T Intermediate US Government Fund BB&T Short US Government Fund BB&T Kentucky Intermediate Tax Free Fund BB&T Maryland Intermediate Tax Free Fund BB&T North Carolina Intermediate Tax Free Fund BB&T South Carolina Intermediate Tax Free Fund BB&T Virginia Intermediate Tax Free Fund BB&T West Virginia Intermediate Tax Free Fund

Taxable and tax-exempt bond funds seek to provide investors with a relatively stable stream of monthly interest income. While tax-exempt (or municipal) bond funds typically pay less income than taxable bond funds, they may be more appropriate for high-tax-bracket investors, as the income from tax-exempt bond funds is free from federal taxes and, in some cases, state and local taxes for residents who live in the states where the bonds are issued.*

In addition to offering regular income, diversifying an equity-oriented portfolio with a bond fund component can be a wise investment strategy. Although bond fund prices can fluctuate and lose value (especially longer-term bond funds in periods of rising interest rates) bond funds are generally less volatile than stock funds, which may help lower overall portfolio volatility. Also, bond and stock market performance generally don’t move in synch. Such diversity may allow you to offset a loss in one asset class with gains in the other.

*The income from tax-free funds may be subject to certain state and local taxes, and depending on your tax-status, the federal alternative minimum tax (AMT).