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3 Long-Term Government Bond Funds for Steady Returns

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Long-term bond funds have an average maturity period between 10 years and 30 years, and generally offer safer options in comparison to short and mid-term ones. While mutual funds from this category seek to provide dividends more frequently than individual bonds, they offer greater stability than those primarily focusing on equity securities. Hence, risk-averse investors looking to earn a stable and regular income may consider long-term bond mutual funds. These mutual funds are believed to provide regular income while protecting the capital invested.

Below, we share with you three top-ranked long-term government bond funds, namely, Hussman Strategic Total Return Fund (HSTRX - Free Report) , Rydex Government Long Bond 1.2x Strategy Fund Investor Class (RYGBX - Free Report) and Calvert Core Bond Fund Class A (CLDAX - 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.

Hussman Strategic Total Return Fund invests its net assets in fixed-income securities, such as Treasury bonds, notes, bills, treasury inflation-protected securities, U.S. treasury Strips, U.S. government agency securities, etc. HSTRX also invest in investment-grade corporate debt issued by Standard & Poor's Global, Moody's Investors Service, or other independent rating organization.

Hussman Strategic Total Return Fund has three-year annualized returns of 6.9%. HSTRX has an expense ratio of 0.78% compared with the category average of 1.29%.

Rydex Government Long Bond 1.2x Strategy Fund Investor Class invests its assets along with borrowings, if any, in fixed-income securities issued by the U.S. government along with derivative instruments, like futures contracts, interest rate swaps, futures and options contracts of securities. RYGBX seeks investment results that are equivalent to 120% of the daily price movement of the Long Treasury Bond for U.S. government securities on a daily basis.

Rydex Government Long Bond 1.2x Strategy Fund Investor Class has five-year annualized returns of 0.2%. As of the end of December 2021, RYGBX had 83.95% of its net assets invested in U.S Treasury Bonds.

Calvert Core Bond Fund Class A invests most of its net assets in U.S. dollar-denominated debt securities, foreign debt securities and American Depositary Receipts. CLDAX also invests a small portion of its net assets in below-investment-grade high-yield debt instruments commonly known as Junk bonds and distressed instruments that are in default.

Calvert Core Bond Fund Class A has three-year annualized returns of 4.1%. Vishal Khanduja has been the fund manager of CLDAX since January 2013.

To view the Zacks Rank and the past performance of all long-term government bond funds, investors can click here to see the complete list of long-term government bond funds.

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