Redemption 

The paying off or buying back of a bond by the issuer; also, repurchase of investment trust units by the trustee, at the bid price.
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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.