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3 Best-Ranked Diversified Bond Mutual Funds for Steady Yield
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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, which 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 to be relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
AB Unconstrained Bond Advisor seeks growth of income, consistent with preservation of capital. AGSIX invests a bulk of its assets in a diversified portfolio of fixed-income securities issued by both domestic and foreign companies. Its portfolio duration is expected to remain from negative three years to positive five years. AB Unconstrained Bond Advisor has a three-year annualized return of 2.6%.
AGSIX has an expense ratio of 0.65% compared with the category average of 1.32%.
Franklin Strategic Income Fund Class A (FRSTX - Free Report) invests primarily in debt securities of domestic and foreign issuers including fixed, variable and floating rate income securities, which are based in emerging countries. FRSTX seeks growth of current income along with appreciation of capital for the long run. Franklin Strategic Income Fund Class A has a three-year annualized return of 1.7%.
Roger Bayston is one of the fund managers of FRSTX since 2015.
Deutsche Unconstrained Income S seeks growth of return. KSTSX invests the lion’s share of its assets in fixed income securities of both domestic and foreign companies. The fund may also invest almost all its assets either in investment-grade bonds or in junk bonds. Deutsche Unconstrained Income S has a three-year annualized return of 1.9%.
As of March 2017, KSTSX held 370 issues, with 5.10% of its assets invested in SPDR Blmbg Barclays High Yield Bd ETF.
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3 Best-Ranked Diversified Bond Mutual Funds for Steady Yield
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, which 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 to be relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
Below we share with you three best-ranked diversified bond 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 diversified bond funds.
AB Unconstrained Bond Advisor seeks growth of income, consistent with preservation of capital. AGSIX invests a bulk of its assets in a diversified portfolio of fixed-income securities issued by both domestic and foreign companies. Its portfolio duration is expected to remain from negative three years to positive five years. AB Unconstrained Bond Advisor has a three-year annualized return of 2.6%.
AGSIX has an expense ratio of 0.65% compared with the category average of 1.32%.
Franklin Strategic Income Fund Class A (FRSTX - Free Report) invests primarily in debt securities of domestic and foreign issuers including fixed, variable and floating rate income securities, which are based in emerging countries. FRSTX seeks growth of current income along with appreciation of capital for the long run. Franklin Strategic Income Fund Class A has a three-year annualized return of 1.7%.
Roger Bayston is one of the fund managers of FRSTX since 2015.
Deutsche Unconstrained Income S seeks growth of return. KSTSX invests the lion’s share of its assets in fixed income securities of both domestic and foreign companies. The fund may also invest almost all its assets either in investment-grade bonds or in junk bonds. Deutsche Unconstrained Income S has a three-year annualized return of 1.9%.
As of March 2017, KSTSX held 370 issues, with 5.10% of its assets invested in SPDR Blmbg Barclays High Yield Bd ETF.
To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond funds.
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