Covertible Bond Mutual funds

http://www.thestreet.com/funds/funds/872317.html

Check the above site for info. regarding Convertible Bond Mutual funds. if you don't like the risk in equity, and still want to have the upside convertible bonds are good.
But disadvantages are: these are usually sub-ordinate debentures, so in case of bankruptcy, u get a worse deal than Bonds.
- lower interest rates
- sometimes they come with Call features, so if equity goes up too much, the bonds might be recalled by the company (not always a very bad feature)
- more pricy than ordinary bonds, so if the company equity does not rise at all, u get a bad deal compared to ordinary (plain vanilla) bonds.
- The big established safe companies usually dont give out convertible bonds.

So if u dont want to deal with bond picking problems, then mutual funds that focus on them are the best. look at the above article, and if u need more inputs ....please do ask.