Zacks #1 Ranked Government Bond Mutual Funds - Best of Funds

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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 portfolios with 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 Zacks #1 mutual funds, investors can click here to see the complete list of funds .

Lord Abbett Income A (LAGVX) invests 65% of its assets in investment grade instruments which include U.S. government affiliated securities, domestic and foreign debt instruments and mortgage related securities. It may also invest in derivatives such as forwards and swaps. The government bond mutual fund returned 9.60% over the last one year period.


The fund has an expense ratio of 0.78% as compared to category average of 0.88%.

AMG Managers Intermediate Duration Government (MGIDX) seeks total return higher than that of the mortgage related indices. It invests majority of its assets in debt securities of domestic government or other agencies authorized by the government. It invests in securities having impressive credit quality to reduce risk. The government bond mutual fund returned 5.47% over the last one year period.

Daniel R. Adler is the fund manager and has managed this fund since 2003.

Wasatch-Hoisington US Treasury (WHOSX) invests a minimum of 90% of its assets in U.S. Treasury instruments. Its maturity and duration are adjusted on HIMCO's analysis of factors such as interest rates and economic conditions. The government bond mutual fund returned 9.85% over the last one year period.

As of March 2014, this fund held 16 issues with 15.27% of its assets invested in US Treasury Bd Stripped Prin Pmt.

T. Rowe Price US Treasury Long-Term (PRULX) seeks high income with credit protection. A minimum of 85 % of its assets is invested in government affiliated U.S. Treasury securities. Rest of the assets is invested in other government backed instruments. It has maturity between 15-20 years and may also vary from 10-30 years. The government bond mutual fund returned 7.97% over the last one year period.

The fund has an expense ratio of 0.52% as compared to category average of 0.56%.

Rydex Government Long Bond 1.2x Strategy Investor (RYGBX) invests largely in U.S. Government backed fixed income instruments including future contracts, swaps and options. It seeks 1.2 times the return of daily price movement of the Long Treasury Bond for U.S. government instruments. This non-diversified government bond mutual fund returned 11.81% over the last one year period.

Ryan A. Harder is the fund manager and has managed this fund since 2008.

To view the Zacks #1 Rank and past performance of these 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
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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