Mutual funds investing in debt securities are among the most
secure investment options which provide regular income while
protecting capital invested. Funds which are part of this category
bring a great deal of stability to portfolio which a large
proportion of equity, while providing dividends more frequently
than individual bonds. U.S government bonds funds usually invest in
Treasury bills, notes and securities issued by government agencies.
They are considered to be the safest in the bond fund category and
are ideal options for the risk-averse investor.
Below we will share with you 5 top rated government bond mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
these mutual funds to outperform their peers in the future. To view
the Zacks Rank and past performance of all government bond funds,
then
click here.
T. Rowe Price US Treasury Long-Term
(PRULX)
invests at least 85% of its assets in U.S Treasury securities. The
balances of its funds are used to purchase other securities issued
by the U.S. government. The government bond mutual fund returned
28.37% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.55% compared to a category
average of 0.84%.
Dreyfus US Treasury Long-Term
(DRGBX)
seeks current income and capital growth. The fund invests a
substantially high proportion of its assets in securities issued or
guaranteed by the U.S. government or its agencies. The government
bond mutual fund returned 29.32% over the last one year period.
As of December 2011, this government bond mutual fund held 25
issues, with 15.41% of its total assets invested in US Treasury
Bond 4.375%.
SunAmerica US Government Securities A
(SGTAX)
invests a large proportion of its assets in domestic government
securities with varying maturity periods. These securities include
bills notes bonds and other debt securities issued the U.S.
Treasury or other government agencies. The government bond mutual
fund returned 9.18% over the last one year period.
Michael Cheah is the fund manager and he has managed this
government bond mutual fund since 1999.
Vanguard Long-Term Treasury Investor
(VUSTX)
seeks current income which is appreciable and sustainable. At least
80% of its assets are used to purchase securities issued by the
U.S. Treasury, including bills, bond and notes. The government bond
mutual fund returned 29.3% over the last one year period.
The government bond mutual fund has a minimum initial investment
of $3,000 and an expense ratio of 0.22% compared to a category
average of 0.84%.
Fidelity Spartan Long-Term Treasury Bond Index
(
FLBIX)
invests at least 80% of its assets in securities which are part of
the Barclays Capital U.S. Long Treasury Bond index. The
dollar-weighted average maturity period of the portfolio is at
least 10 years or more. The government bond mutual fund returned
29.48% over the last one year period.
The Fund Manager is Curt Hollingsworth and he has managed this
government bond fund since 2009.
To view the Zacks Rank and past performance of all government
bond mutual funds, then
click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
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