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. The
diversified bond mutual fund returned 5.92% in the last one year
period.
The diversified bond mutual fund has a minimum initial
investment of $1,000 and an expense ratio of 0.80% compared to a
category average of 1.12%.
Brandes Separately Managed Account Reserve Trust
(
SMARX
) seeks maximum total return over the long term. The fund invests
in a wide range of debt securities. These may be issued by
governments as well as companies, both domestic and foreign. The
diversified bond mutual fund returned 4.35% in the last one year
period.
As of March 2012, this diversified bond mutual fund held 66
issues, with 4.34% of its total assets invested in Jpmorgan Chase
FRN.
Optimum Fixed Income A
(
OAFIX
) invests the majority of its assets in fixed-income securities.
The fund purchases a wide range of government securities, corporate
debt, municipal and asset-backed securities. The weighted average
maturity period of the fund varies between five to ten years. The
diversified bond mutual fund returned 6.67% in the last one year
period.
Paul Grillo is the fund manager and has managed this diversified
bond mutual fund since 2003.
Fidelity Total Bond
(
FTBFX
) seeks high current income. The fund utilizes the majority of its
assets to purchase a wide range of debt securities and related
repurchase agreements. The diversified bond mutual fund returned
6.87% in the last one year period.
The diversified bond mutual fund has a minimum initial
investment of $2,500 and an expense ratio of 0.45% compared to a
category average of 0.92%.
RidgeWorth Total Return Bond A
(
CBPSX
) primarily purchases securities rated investment grade by at least
one domestic securities rating firm. Not more than 20% of its
assets are utilized to purchase high-yield debt securities rated
investment grade. The diversified bond mutual fund returned 8.86%
in the last one year period.
Adrien Webb is the fund manager and he has managed this
diversified bond mutual fund since 2002.
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
(CBPSX): ETF Research Reports
(FTBFX): ETF Research Reports
(OAFIX): ETF Research Reports
(PONAX): ETF Research Reports
(SMARX): ETF Research Reports
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Research