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Mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Moreover, investing in diversified bond funds is preferred to individual bond investing, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
PIMCO Fixed Income SHares: Series R seeks maximum real return, consistent with the preservation of real capital and prudent investment management. FXIRX invests the majority of its net assets in a portfolio of U.S. and foreign fixed income instruments, including inflation-indexed bonds issued by both U.S. and foreign governments and corporations. The fund has returned 8.1% over the past three years.
Stephen Rodosky has been one of the fund managers of FXIRX since 2019.
BBH Limited Duration Fund Class N aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds. The fund has returned 1.72% over the past three years.
As of October 2021, BBBMX has 55.3% of its assets invested in Total Misc Bonds.
Ave Maria Bond Fund invests primarily in investment-grade debt securities of domestic issuers, including the U.S. government and its agencies and instrumentalities, corporations and municipalities and money market instruments. AVEFX may invest a part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 4.4% over the past three years.
AVEFX has an expense ratio of 0.43% compared with the category average of 0.64%.
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3 Diversified Bond Mutual Funds for Solid Returns
Mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Moreover, investing in diversified bond funds is preferred to individual bond investing, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
Below we share with you three top-ranked diversified bond mutual funds, namely PIMCO Fixed Income SHares: Series R (FXIRX - Free Report) , BBH Limited Duration Fund Class N (BBBMX - Free Report) and Ave Maria Bond Fund (AVEFX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
PIMCO Fixed Income SHares: Series R seeks maximum real return, consistent with the preservation of real capital and prudent investment management. FXIRX invests the majority of its net assets in a portfolio of U.S. and foreign fixed income instruments, including inflation-indexed bonds issued by both U.S. and foreign governments and corporations. The fund has returned 8.1% over the past three years.
Stephen Rodosky has been one of the fund managers of FXIRX since 2019.
BBH Limited Duration Fund Class N aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds. The fund has returned 1.72% over the past three years.
As of October 2021, BBBMX has 55.3% of its assets invested in Total Misc Bonds.
Ave Maria Bond Fund invests primarily in investment-grade debt securities of domestic issuers, including the U.S. government and its agencies and instrumentalities, corporations and municipalities and money market instruments. AVEFX may invest a part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 4.4% over the past three years.
AVEFX has an expense ratio of 0.43% compared with the category average of 0.64%.
To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.
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