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3 Diversified Bond Mutual Funds to Diversify Your Portfolio
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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.
Aristotle Strategic Income 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. The fund has returned 0.6% over the past three years.
Michael Marzouk has been one of the fund managers of PLSFX since 2016.
BBH Limited Duration Fund 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 2.1% over the past three years.
As of July 2023, BBBMX had 60.9% 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 part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 1.6% over the past three years.
AVEFX has an expense ratio of 0.42% compared with the category average of 0.64%.
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3 Diversified Bond Mutual Funds to Diversify Your Portfolio
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 Aristotle Strategic Income (PLSFX - Free Report) , BBH Limited Duration (BBBMX - Free Report) and Ave Maria Bond (AVEFX - Free Report) . Each has 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.
Aristotle Strategic Income 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. The fund has returned 0.6% over the past three years.
Michael Marzouk has been one of the fund managers of PLSFX since 2016.
BBH Limited Duration Fund 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 2.1% over the past three years.
As of July 2023, BBBMX had 60.9% 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 part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 1.6% over the past three years.
AVEFX has an expense ratio of 0.42% 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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