What is a primary objective of bond funds?

A primary objective of bond funds is to produce a steady stream of income. Bond funds primarily invest in fixed-income securities like government bonds, municipal bonds, and corporate bonds. These bonds typically pay interest at regular intervals, which provides investors with a predictable and stable cash flow. This income generation is particularly appealing to those who are looking for stability and lower volatility in their investment portfolios, such as retirees or conservative investors.

In contrast, options that involve incurring higher risks for maximum capital gains or facilitating day trading don't align with the fundamental purpose of bond funds. These funds are specifically designed for income rather than speculative trading strategies or heavy investment in equities, which are generally associated with higher risk and potential for greater fluctuations in value. Therefore, the focus on generating consistent income makes the chosen answer accurate and reflective of the core objective of bond funds.