Bonds are the logical choice of investors who are willing to
forgo capital growth for a regular income stream. The cost of
individually purchasing bonds from various categories may become a
particularly expensive proposition. This is why mutual funds are
the most affordable method of investing in bonds. Diversified bond
mutual funds further reduce the risk involved since their
portfolios consist of securities from various classes and sectors.
This ensures that any negative fluctuation in a specific sector
only has a partial effect on the fund's fortunes.
Below we will share with you 5 top rated diversified 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 diversified bond funds, investors can
click here to see the complete list of funds
.
PIMCO Income A
(
PONAX
) invests a minimum of 65% of its assets in fixed-income securities
from different sectors and with diverse maturity periods. A maximum
of half of its assets may be utilized to purchase junk bonds. Not
more than 20% of its assets may be invested in instruments with
economic linkages to emerging markets. The diversified bond mutual
fund returned 6.06% in the last one year period.
Daniel J. Ivascyn is the fund manager and he has managed this
diversified bond mutual fund since 2007.
DWS Unconstrained Income A
(
KSTAX
) seeks a high level of total return. The fund invests primarily in
fixed-income securities issued by the U.S. and foreign governments
as well as those issued by domestic and foreign companies. The
diversified bond mutual fund returned 6.34% in the last one year
period.
The diversified bond mutual fund has an expense ratio of 1.04%
compared to a category average of 1.12%.
Brandes Separately Managed Account Reserve Trust
(
SMARX
) invests in a wide range of debt securities. These may be issued
by governments as well as companies, both domestic and foreign. Not
more than 60% of its assets may be invested in foreign dollar
securities. The diversified bond mutual fund returned 5.27% in the
last one year period.
Timothy M. Doyle is the fund manager and he has managed this
diversified bond mutual fund since 2012.
Hartford Strategic Income A
(
HSNAX
) seeks total return over the long term as well as current income.
The fund purchases both domestic and foreign debt securities,
including those issued from emerging markets. It usually holds a
wide range of instruments across different sectors. The diversified
bond mutual fund returned 6.2% in the last one year period.
As of March 2012, this diversified bond mutual fund held 222
issues, with 3.69% of its total assets invested in U.S. Treasury
Bond 5.375%.
Thornburg Strategic Income A
(
TSIAX
) invests in a wide range of income generating securities. The fund
focuses on acquiring debt securities issued from across the world.
These may be of differing quality and have different maturity
periods. The diversified bond mutual fund returned 3.06% in the
last one year period.
The diversified bond mutual fund has an expense ratio of 1.20%
compared to a category average of 1.12%.
To view the Zacks Rank and past performance of all diversified
bond mutual funds, investors can
click 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
.
View All Zacks #1 Ranked Mutual Funds
(HSNAX): ETF Research Reports
(KSTAX): ETF Research Reports
(PONAX): ETF Research Reports
(SMARX): ETF Research Reports
(TSIAX): ETF Research Reports
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