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4 Best Performing PIMCO Mutual Funds For the Year Ahead
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Founded in 1971, Pacific Investment Management Company, LLC or PIMCO is an internationally acclaimed investment management firm. The company provides a wide range of financial services across the globe with the help of more than 2,800 employees. PIMCO had around $2.21 trillion assets under management as of Dec 31, 2020.
PIMCO offers a broad line-up of investment solutions for the entire gamut of equities, bonds, currencies, real estate, alternative investments and risk-management services. Though the firm manages an array of mutual funds, it is best known for those based on fixed income.
The fund house invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 34.1% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
We have highlighted four PIMCO mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
PIMCO Fixed Income SHares: Series M (FXIMX - Free Report) fund aims for maximum total return along with the preservation of capital and prudent investment management. The fund invests the majority of its assets in a portfolio of domestic and foreign fixed income instruments of varying maturities that include mortgage- and other asset-backed securities, corporate debt securities, and floating and variable rate debt instruments.
This Sector - Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 7% and 6.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.06%.
PIMCO Municipal Bond A (PMLAX - Free Report) seeks a high level of income free from federal income tax as well as preservation of capital. PMLAX invests a bulk of its assets in debt securities whose interest is exempted from federal income tax. The fund may also invest around one-fifth of its assets in money market instruments and U.S. government securities.
This Zacks Muni-Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PMLAXsports a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.82%. The fund has one and three-year returns of 4.5% and 5.4%, respectively.
PIMCO RAE US Small Fund Class A (PMJAX - Free Report) seeks long-term capital growth. The fund invests the majority of its assets in securities of small-capitalization companies. It particularly focuses on small companies economically tied to the United States.
This Zacks Small Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PMJAXcarries a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.94%. The fund has one and three-year returns of 21.5% and 6.6%, respectively.
PIMCO Diversified Income Fund Class C (PDICX - Free Report) seeks to maximize total return on investment, which is on par with preservation of capital. The fund invests the majority of its assets in a diverse portfolio of Fixed Income Instruments of varying maturities. It may also invest in investment-grade as well as high-yield securities.
This Zacks Diversified Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PDICXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.94%. The fund has one and three-year returns of 4.9% and 4.6%, respectively.
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4 Best Performing PIMCO Mutual Funds For the Year Ahead
Founded in 1971, Pacific Investment Management Company, LLC or PIMCO is an internationally acclaimed investment management firm. The company provides a wide range of financial services across the globe with the help of more than 2,800 employees. PIMCO had around $2.21 trillion assets under management as of Dec 31, 2020.
PIMCO offers a broad line-up of investment solutions for the entire gamut of equities, bonds, currencies, real estate, alternative investments and risk-management services. Though the firm manages an array of mutual funds, it is best known for those based on fixed income.
The fund house invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 34.1% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
We have highlighted four PIMCO mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
PIMCO Fixed Income SHares: Series M (FXIMX - Free Report) fund aims for maximum total return along with the preservation of capital and prudent investment management. The fund invests the majority of its assets in a portfolio of domestic and foreign fixed income instruments of varying maturities that include mortgage- and other asset-backed securities, corporate debt securities, and floating and variable rate debt instruments.
This Sector - Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 7% and 6.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.06%.
PIMCO Municipal Bond A (PMLAX - Free Report) seeks a high level of income free from federal income tax as well as preservation of capital. PMLAX invests a bulk of its assets in debt securities whose interest is exempted from federal income tax. The fund may also invest around one-fifth of its assets in money market instruments and U.S. government securities.
This Zacks Muni-Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PMLAXsports a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.82%. The fund has one and three-year returns of 4.5% and 5.4%, respectively.
PIMCO RAE US Small Fund Class A (PMJAX - Free Report) seeks long-term capital growth. The fund invests the majority of its assets in securities of small-capitalization companies. It particularly focuses on small companies economically tied to the United States.
This Zacks Small Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PMJAXcarries a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.94%. The fund has one and three-year returns of 21.5% and 6.6%, respectively.
PIMCO Diversified Income Fund Class C (PDICX - Free Report) seeks to maximize total return on investment, which is on par with preservation of capital. The fund invests the majority of its assets in a diverse portfolio of Fixed Income Instruments of varying maturities. It may also invest in investment-grade as well as high-yield securities.
This Zacks Diversified Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PDICXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.94%. The fund has one and three-year returns of 4.9% and 4.6%, respectively.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>