Inflation-Adjusted Principal

For an inflation-indexed security, the principal amount of the security, derived by multiplying the par amount by the applicable index ratio.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.