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3 Diversified Bond Funds to Buy for Alluring Gains
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Investing in diversified bond funds is preferred more 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.
Moreover, 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.
BlackRock Floating Rate Income Fund seeks floating-rate income by investing most of its net assets in floating-rate investments and other investments with similar economic characteristics. BFRAX advisors may also purchase, without limitation, participations or assignments in senior floating-rate loans or second-lien floating rate-loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.5%. David Delbos has been one of the fund managers of BFRAX since August 2018.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered as bond. PADAX advisors may also invest in debt securities that hold ratings below investment grade.
PGIM Absolute Return Bond Fund has three-year annualized returns of 3.3%. As of the end of January 2023, PADAX held 36.1% of its net assets in miscellaneous bonds.
Pacific Funds Strategic Income primarily invests in debt instruments that generate income. PLSFX’s allocations to non-investment grade debt instruments and investment grade debt instruments vary on the advisor’s view of market conditions.
Pacific Funds Strategic Income has three-year annualized returns of 2.6%.PLSFX has an expense ratio of 0.69% compared with the category average of 0.97%.
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3 Diversified Bond Funds to Buy for Alluring Gains
Investing in diversified bond funds is preferred more 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.
Moreover, 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.
Below, we share with you three top-ranked diversified bond mutual funds, viz., BlackRock Floating Rate Income Fund (BFRAX - Free Report) , PGIM Absolute Return Bond Fund (PADAX - Free Report) and Pacific Funds Strategic Income (PLSFX - 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.
BlackRock Floating Rate Income Fund seeks floating-rate income by investing most of its net assets in floating-rate investments and other investments with similar economic characteristics. BFRAX advisors may also purchase, without limitation, participations or assignments in senior floating-rate loans or second-lien floating rate-loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.5%. David Delbos has been one of the fund managers of BFRAX since August 2018.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered as bond. PADAX advisors may also invest in debt securities that hold ratings below investment grade.
PGIM Absolute Return Bond Fund has three-year annualized returns of 3.3%. As of the end of January 2023, PADAX held 36.1% of its net assets in miscellaneous bonds.
Pacific Funds Strategic Income primarily invests in debt instruments that generate income. PLSFX’s allocations to non-investment grade debt instruments and investment grade debt instruments vary on the advisor’s view of market conditions.
Pacific Funds Strategic Income has three-year annualized returns of 2.6%.PLSFX has an expense ratio of 0.69% compared with the category average of 0.97%.
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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