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3 Diversified Bonds Mutual Funds for Steady Returns
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When it comes to investing, diversified bond funds are preferred to individual bonds, 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.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered as bonds. 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 3.1%. PADAX has an expense ratio of 0.97% compared with the category average of 1.23%.
BlackRock Floating Rate Income Fund invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating-rate loans or second-lien floating-rate loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.1%. As of the end of May 2023, BFRAX had 62.7% of its assets invested in Total Misc Bonds.
Aristotle Strategic Income Fund 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.
Aristotle Strategic Income Fund has three-year annualized returns of 1.2%. Michael Marzouk has been one of the fund managers of PLSFX since February 2016.
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3 Diversified Bonds Mutual Funds for Steady Returns
When it comes to investing, diversified bond funds are preferred to individual bonds, 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., PGIM Absolute Return Bond Fund (PADAX - Free Report) , BlackRock Floating Rate Income Fund (BFRAX - Free Report) and Aristotle Strategic Income Fund (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.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered as bonds. 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 3.1%. PADAX has an expense ratio of 0.97% compared with the category average of 1.23%.
BlackRock Floating Rate Income Fund invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating-rate loans or second-lien floating-rate loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.1%. As of the end of May 2023, BFRAX had 62.7% of its assets invested in Total Misc Bonds.
Aristotle Strategic Income Fund 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.
Aristotle Strategic Income Fund has three-year annualized returns of 1.2%. Michael Marzouk has been one of the fund managers of PLSFX since February 2016.
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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