Lower investment amounts. The minimum investment for an individual bond can be as high as $10, minimum initial investment in a bond fund, by contrast, is often considerably lower, so even an investor who has limited funds can participate in the bond minimum initial investment in most Vanguard bond funds, for example, is $3,000 per fund for a regular account or $1,000 for an individual retirement account (IRA) or Uniform Gifts/ Transfers to Minors Act (UGMA/UTMA) account. A mutual fund investor can also purchase additional fund shares in amounts far smaller than the cost of an individual bond
