Investing in high yield securities needs an above average
appetite for risk as the probability of default is the highest in
these securities. These lower rated securities carry high coupon
yields to compensate investors for the associated risk. However,
they can maximize total returns by generating high interest income
and capital appreciation over the long term. Mutual funds investing
in these securities significantly reduce the associated risk
through diversification and should be a part of the portfolio of
every investor looking at maximum returns.
Below we will share with you the 5 highest yielding Zacks #1
ranked high yield 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 high yield funds, investors can
click here to see the complete list of funds
.
|
Mutual Fund
|
Sec 30 Day Yield
|
|
CNI Charter High Yield Bond
|
8.98%
|
|
Waddell & Reed High-Income A
|
8.52%
|
|
Northern High Yield Fixed Income
|
8.00%
|
|
Lord Abbett High Yield A
|
7.54%
|
|
Federated High-Income Bond A
|
7.40%
|
CNI Charter High Yield Bond
(
CHYIX
) seeks maximum total return. The fund invests the majority of its
assets in junk bonds. Corporate bonds and debentures, convertible
and preferred securities and government securities constitute its
primary investments. This high yield mutual fund returned 5.73%
over the last one year period.
Richard J. Lindquist is the fund manager and he has managed this
high yield mutual fund since 2000.
Waddell & Reed High-Income A
(
UNHIX
) invests the majority of its assets in a wide range of high yield
debt instruments, the risk associated with which is in consonance
with the fund's objective. The fund purchases fixed-income
securities without regard to their maturity period. This high yield
mutual fund returned 7.92% over the last one year period.
The high yield mutual fund has a minimum initial investment of
$500 and an expense ratio of 1.08% compared to a category average
of 1.15%.
Northern High Yield Fixed Income
(
NHFIX
) seeks high current income. The fund invests a large proportion of
its assets in corporate bonds rated below investment-grade and
other fixed-income securities. The fund focuses on purchasing
domestic debt securities. This high yield mutual fund returned
4.75% over the last one year period.
Richard J. Inzunza is the fund manager and he has managed this
high yield mutual fund since 2007.
Lord Abbett High Yield A
(
LHYAX
) invests the majority of its assets in junk bonds, including those
issued by companies and convertible securities. Not more than 20%
of its assets are utilized to purchase foreign securities. This
high yield mutual fund returned 4.86% over the last one year
period.
As of March 2012, this high yield mutual fund held 456 issues,
with 0.92% of its total assets invested in Ford Motor Credit Co
12%.
Federated High-Income Bond A
(
FHIIX
) seeks a high current level of current income. The fund invests
heavily in a wide range of high yield corporate bonds. These
include domestic and foreign debt securities as well as those
issued from emerging markets. This high yield mutual fund returned
6.56% over the last one year period.
The high yield mutual fund has a minimum initial investment of
$500 and an expense ratio of 1.08% compared to a category average
of 1.16%.
To view the Zacks Rank and past performance of all high yield
mutual funds, investors can
click here to see the complete list of funds
. o o for breakfast or a drinkclick here to see the complete list
of funds.
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
.
(CHYIX): ETF Research Reports
(FHIIX): ETF Research Reports
(LHYAX): ETF Research Reports
(NHFIX): ETF Research Reports
(UNHIX): ETF Research Reports
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