What investment fund type combines features of a bond fund and a money market fund to provide potentially higher returns?

The investment fund type that effectively combines features of a bond fund and a money market fund while aiming to provide potentially higher returns is a short-term bond fund. These funds invest primarily in short-duration bonds, which tend to offer higher yields than traditional money market instruments, while maintaining a level of liquidity and lower risk relative to longer-term bonds.

Short-term bond funds often focus on investment-grade securities, which can help provide more stability than equity investments. Moreover, by having shorter maturities, these funds can adjust more rapidly to changes in interest rates, contributing to a balance between yield and risk.

In contrast, blended payments, fund of funds, and portfolio allocation services cater to different investment needs and strategies. Blended payments typically refer to a structure in finance rather than a specific fund type. A fund of funds invests in other mutual funds, diversifying investments but may not specifically combine bond and money market features. Portfolio allocation services focus on spreading investments across a range of different asset classes rather than being anchored to the characteristics of both bond and money market funds.