Mutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting capital invested. Funds of this nature 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.
ProFunds US Government Plus ( GVPSX ) seeks daily returns which are 1.25 times the daily price movement of the most recently issued Long Bond. The fund purchases domestic government bonds and derivatives that provide such daily returns. The government bond mutual fund returned 47.37% over the last one year period.
The Fund Manager is Michelle Liu and she has managed this government bond fund since 2009.
T. Rowe Price US Treasury Long-Term ( PRULX ) invests at least 85% of its assets in U.S Treasury securities. The fund targets the longer end of the yield curve with the portfolio weighted average maturity period forecasted in the range of 15 to 20 years. The government bond mutual fund returned 30.31% over the last one year period.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.55% compared to a category average of 0.83%.
Rydex Government Long Bond 1.2x Strategy ( RYGBX ) seeks returns which are 1.2x the returns of the long dated U.S Treasury Bonds. The fund invests in a variety of derivative instruments and U.S Government securities to match its investment objective. The government bond mutual fund returned 48.61% over the last one year period.
The Fund Manager is Ryan A. Harder and he has managed this government bond fund since 2008.
Fidelity Spartan Long-Term Treasury Bond Index ( FIBAX ) invests the majority of its assets in securities which are part of the Barclays Capital U.S. 5-10 Year Treasury Bond Index. The dollar-weighted average maturity period of the portfolio ranges from three to ten years. The government bond mutual fund returned 10.17% over the last one year period.
As of July 2012, this government bond mutual fund held 57 issues, with 4.77% of its total assets invested in US Treasury Bond 2%.
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 30.41% 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 0.83%.
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 at http://www.zacks.com/funds.