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3 Top-Rated PIMCO Mutual Funds to Buy Now

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Pacific Investment Management Company, LLC (commonly known as PIMCO) is an internationally acclaimed investment management firm. The company provides a wide range of financial services in 12 countries with the help of more than 2,200 employees and over 700 professionals.

PIMCO offers a broad lineup of investment solutions to its clients that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management. Though the firm manages an array of mutual funds, it is best known for its fixed income mutual funds.

Below we share with you three best-rated PIMCO mutual funds. 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 PIMCO funds.

PIMCO High Yield Municipal Bond D invests a major portion of its assets in debt obligations which are expected to provide income free from federal income tax. PYMDX may invest in investment grade municipal bonds and not more than 30% of its assets in "private activity" bonds. PIMCO High Yield Municipal Bond D has a three-year annualized return of 8.5%.

PYMDX has an expense ratio of 0.85% compared to the category average of 0.95%.

PIMCO StocksPLUS A (PSPAX - Free Report) maintains a portfolio by investing in fixed income securities related to the S&P 500 including bonds and other derivatives in order to derive a higher return than the index. PSPAX invests in securities from public as well as private sectors issued worldwide. While PSPAX will not invest more than 30% of its assets in foreign currencies denominated securities, it may invest more than 30% of its assets in foreign securities that are denominated in the U.S. dollar. PIMCO StocksPLUS A has a three-year annualized return of 9.5%.

Sudi N Mariappa is the fund manager of PSPAX since 2014.

PIMCO Real Estate Real Return Strategy D seeks to provide maximum real return. PETDX invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. Also, PETDX invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. PIMCO Real Estate Real Return Strategy D has a three-year annualized return of 12.7%.

As of June 2016, PETDX held 455 issues with 37.32% of its assets invested in US Treasury Note.

To view the Zacks Rank and past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.

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