Top 5 Zacks #1 Ranked Diversified Bond Mutual Funds - Best of Funds
July 11 2012 - 8:28AM
Zacks
Bonds are the logical choice of investors who are willing to
forgo capital growth for a regular income stream. The cost of
individually purchasing bonds from various categories may become a
particularly expensive proposition. This is why mutual funds are
the most affordable method of investing in bonds. Diversified bond
mutual funds further reduce the risk involved since their
portfolios consist of securities from various classes and sectors.
This ensures that any negative fluctuation in a specific sector
only has a partial effect on the fund’s fortunes.
Below we will share with you 5 top rated diversified 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 diversified bond
funds, investors can click here to see the complete list of
funds.
PIMCO Income A (PONAX) invests a minimum of 65% of its
assets in fixed-income securities from different sectors and with
diverse maturity periods. A maximum of half of its assets may be
utilized to purchase junk bonds. The diversified bond mutual fund
returned 5.92% in the last one year period.
The diversified bond mutual fund has a minimum initial
investment of $1,000 and an expense ratio of 0.80% compared to a
category average of 1.12%.
Brandes Separately Managed Account Reserve Trust (SMARX)
seeks maximum total return over the long term. The fund invests in
a wide range of debt securities. These may be issued by governments
as well as companies, both domestic and foreign. The diversified
bond mutual fund returned 4.35% in the last one year period.
As of March 2012, this diversified bond mutual fund held 66
issues, with 4.34% of its total assets invested in Jpmorgan Chase
FRN.
Optimum Fixed Income A (OAFIX) invests the majority of
its assets in fixed-income securities. The fund purchases a wide
range of government securities, corporate debt, municipal and
asset-backed securities. The weighted average maturity period of
the fund varies between five to ten years. The diversified bond
mutual fund returned 6.67% in the last one year period.
Paul Grillo is the fund manager and has managed this diversified
bond mutual fund since 2003.
Fidelity Total Bond (FTBFX) seeks high current income.
The fund utilizes the majority of its assets to purchase a wide
range of debt securities and related repurchase agreements. The
diversified bond mutual fund returned 6.87% in the last one year
period.
The diversified bond mutual fund has a minimum initial
investment of $2,500 and an expense ratio of 0.45% compared to a
category average of 0.92%.
RidgeWorth Total Return Bond A (CBPSX) primarily
purchases securities rated investment grade by at least one
domestic securities rating firm. Not more than 20% of its assets
are utilized to purchase high-yield debt securities rated
investment grade. The diversified bond mutual fund returned 8.86%
in the last one year period.
Adrien Webb is the fund manager and he has managed this
diversified bond mutual fund since 2002.
To view the Zacks Rank and past performance of all diversified
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.
View All Zacks #1 Ranked Mutual Funds
(CBPSX): ETF Research Reports
(FTBFX): ETF Research Reports
(OAFIX): ETF Research Reports
(PONAX): ETF Research Reports
(SMARX): ETF Research Reports
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