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, investors
can click here to see the complete list of
funds.
VALIC Company I Inflation Protected
(VCTPX) seeks high real return. The fund invests the majority of
its assets in inflation protected fixed income instruments that
are issued by domestic and foreign governments. A maximum of 10%
of its assets may be invested in junk bonds. The government bond
mutual fund returned 8.03% over the last one year period.
The government bond mutual fund has an expense ratio of 0.61%
compared to a category average of 0.80%.
AMF Short US Government
(ASITX) invests exclusively in instruments that are issued or
backed by the U.S. government or related agencies. It also
repurchases agreements backed by such instruments. Normally, the
fund purchases U.S. Treasury Notes which have a maturity period
of 1 to 3 years. The government bond mutual fund returned 4.92%
over the last one year period.
The Fund Manager is Sean Kelleher and he has managed this
government bond fund since 2009.
PIMCO Real Return A
(PRTNX) seeks high real return. The fund invests heavily in bonds
issued by U.S. and foreign government and related agencies which
provide returns higher than the inflation rate over a business
cycle. It predominantly invests in securities rated investment
grade. The government bond mutual fund returned 8.72% over the
last one year period.
As of September 2012, this government bond mutual fund held
929 issues, with 10.73% of its total assets invested in Fin Fut
Euro$ Cme 03/14/16.
John Hancock Funds2 Real Return Bond 1
(JIRRX) invests heavily in domestic and foreign government
instruments that are inflation protected. A maximum of 10% of its
assets may be invested in junk bonds. The government bond mutual
fund returned 8.71% over the last one year period.
The government bond mutual fund has an expense ratio of 0.81%
compared to a category average of 0.80%.
Western Asset Mortgage Backed Securities A
(SGVAX) seeks current return. The fund invests the majority of
its assets in mortgage backed securities. These may be issued by
agencies such as the Government National Mortgage Association
(Ginnie Mae) as well as government sponsored agencies. The
government bond mutual fund returned 7.90% over the last one year
period.
The Fund Manager is Stephen Walsh and he has managed this
government bond fund since 2006.
To view the Zacks Rank and past performance of all government
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
.
View All Zacks #1 Ranked Mutual Funds
(ASITX): ETF Research Reports
(JIRRX): ETF Research Reports
(PRTNX): ETF Research Reports
(SGVAX): ETF Research Reports
(VCTPX): ETF Research Reports
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