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Consider These 3 USAA Mutual Funds for Striking Gains

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USAA Investment Management Company allocates its assets across a wide range of mutual fund categories, including both equity and fixed-income funds. The company seeks to follow military values — Service, Loyalty, Honesty and Integrity — to offer financial services such as brokerage services and discretionary asset management.

Founded 40 years ago, the company currently has $64.6 billion of assets under management invested in more than 50 mutual funds. The company aims to offer the best investment options at low initial investments and reasonable entry points.

Below we share with you three top-ranked USAA 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 USAA funds.

USAA Tax Exempt Intermediate-Term (USATX - Free Report) seeks to offer interest income free from federal income tax. The fund invests a large chunk of its assets in tax-free investment-grade securities. USATX maintains a dollar-weighted portfolio, with average maturity ranging from three to 10 years. USAA Tax Exempt Intermediate-Term has three-year annualized returns of 2.2%.

As of August 2018, USATX held 1,022 issues with 0.89% of its assets invested in HARRIS CNTY TEX INDL DEV CORP 5%.

USAA NY Bond (USNYX - Free Report) invests mainly in investment-grade securities issued by the New York state and its related government agencies. USNYX seeks to provide interest income free from federal income tax as well as New York City and New York State personal income taxes. The fund maintains a dollar-weighted portfolio whose average maturity is 10 years or higher. USAA NY Bond has three-year annualized returns of 2.1%.

USNYX has an expense ratio of 0.59% as compared to the category average of 0.83%.

USAA California Bond Fund (USCBX - Free Report) seeks growth of interest income that is free from federal and California state income taxes. USCBX invests heavily in securities that are rated investment grade and issued by the state of California, its political divisions and other related government entities. USAA California Bond Fund has three-year annualized returns of 2.4%.

John C. Bonnell is the fund manager of USCBX since 2006.

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

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