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
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.
ProFunds Rising Rates Opportunity
(RRPSX) invests with the intention of getting returns on a daily
basis which is 1.25 times the inverse of that of the daily
returns of the 30-Year U.S. Treasury Bond. The government bond
mutual returned 6.43% over the last one year
The government bond mutual fund has an expense ratio of 2.62%
compared to a category average of 1.93%.
Western Asset Mortgage Backed Securities A
(SGVAX) seeks current income. A majority of assets are invested a
large share of its assets in mortgage-backed securities issued by
government backed institutions such as Federal National Mortgage
Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac). The government bond mutual fund
returned 5.92% over the last one year period.
As of September 2013, this government bond mutual fund held
651 issues, with 9.24% of its total assets invested in 0wp253511
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Homestead Short-Term Government
(HOSGX) invests a majority of its assets in fixed-income
securities that are backed by the U.S. government. The fund also
invests a portion of its assets in municipal bonds,
collateralized mortgage obligations, asset-backed securities,
corporate bonds and money market securities. The government bond
mutual returned 0.21% over the last one year period.
The Fund Manager is Douglas G. Kern and she has managed this
government bond fund since 1995.
Rydex Inverse Government Long Bond Strategy
(RYJUX) seeks returns inversely proportional to the daily returns
of the Long Treasury Bond for U.S. Treasury debt instruments. A
major portion of assets is invested in derivatives. The
government bond mutual fund returned 9.33% over the last one year
The government bond mutual fund has an expense ratio of 1.39%
compared to a category average of 1.94%.
Driehaus Active Income
(LCMAX) invests the majority of its assets in US floating rate
and fixed income securities. Investments are also parked in
investment graded and junk bonds. The government bond mutual
returned 3.70% over the last one year period.
The Fund Manager is K.C. Nelson and he has managed this
government bond fund since 2009.
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
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