Top 5 Government Bond Mutual Funds - Best of Funds
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. 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, then click here.
Federated US Government Bond ( FEDBX) seeks total return. The fund focuses on acquiring U.S. government securities as well as treasury securities and related derivatives. The government bond mutual fund returned 12.45% over the last one year period.
The Fund Manager is Donald T. Ellenberger and he has managed this government bond fund since 2005.
SunAmerica US Government Securities A(SGTAX) invests a large proportion of its assets in domestic government securities with varying maturity periods. These securities include bills notes bonds and other debt securities issued the U.S. Treasury or other government agencies. The government bond mutual fund has a five year annualized return of 4.79%.
The government bond mutual fund has a minimum initial investment of $500 and an expense ratio of 0.99% compared to a category average of 0.98%.
JPMorgan Government Bond A(OGGAX) seeks high current income and preservation of capital invested. The majority of its assets are used to purchase bonds issued by the U.S. Government and its agencies. The government bond mutual fund returned 7.13% over the last one year period.
As of October 2011, this government bond mutual fund held 355 issues, with 7.85% of its total assets invested in JPMorgan US Govt MMkt Inst.
T. Rowe Price US Treasury Long-Term ( PRULX) invests at least 85% of its assets in U.S Treasury securities. The balances of its funds are used to purchase other securities issued by the U.S. government. The average weighted maturity generally ranges from 15 and 20 years, but may range from 10 to 30 years. The government bond mutual fund has a three year annualized return of 9.03%.
The Fund Manager is Brian J. Brennan and he has managed this government bond fund since 2003.
Dreyfus US Treasury Long-Term ( DRGBX) seeks current income and capital growth. The fund invests a substantially high proportion of its assets in securities issued or guaranteed by the U.S. government or its agencies. The government bond mutual fund returned 20.51% over the last one year period.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.65% compared to a category average of 0.84%.
To view the Zacks Rank and past performance of all government bond mutual funds, then click here.
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.