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Top 5 Government Bond Mutual Funds
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ShareThe risk-averse investor chooses debt instruments over equity not only to ensure safety for capital invested but also to receive regular income flows from these securities. Mutual funds investing in bonds bring a great deal of stability to an equity-heavy portfolio while providing dividends more frequently than individual bonds. U.S government bond mutual funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest of all bond funds and are ideal options for conservative investors.
Below we will share with you 5 top rated government bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all government bond funds, then click here.
Sentinel Government Securities A (SEGSX) seeks current income with a reasonable amount of risk. At least 80% of the fund’s assets are used to purchase U.S. government securities. A large proportion of its assets are invested in mortgage-backed U.S. government securities. The government bond mutual fund has a five year annualized return of 6.33%.
The government bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.91% compared to a category average of 1.00%.
SunAmerica US Government Securities A (SGTAX) invests a large proportion of its assets in bonds. Securities issued by the U.S. government and its agencies as well as other domestic and foreign bonds constitute the fund’s major investments. The government bond mutual fund returned 5.56% over the last one year period.
Michael Cheah is the fund manager and has managed this government bond mutual fund since 1999.
JPMorgan Government Bond A (OGGAX) seeks high current income and preservation of capital invested. The majority of its assets are used to purchase bonds issued by the U.S. Government and its agencies. The government bond mutual fund has a ten year annualized return of 6.3%.
As of July 2010, this government bond mutual fund held 359 issues, with 7.79% of its total assets invested in JPMorgan US Govt MMkt Inst.
Legg Mason Western Asset Government Securities A (SGVAX) invests the majority of its assets in securities issued by the U.S. government and its agencies. U.S. Treasury securities and debt securities issued by federal agencies are some of the categories the fund invests in. It may also utilize synthetic instruments to help manage risk. The government bond mutual fund has a three year annualized return of 6.87%.
The government bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.92% compared to a category average of 1.00%.
Wasatch-Hoisington US Treasury (WHOSX) seeks both capital growth and current income. The fund invests at least 90% of its assets in U.S Treasury securities and repurchase agreements backed by such instruments. The government bond mutual fund returned 11.7% over the last one year period.
The Fund Manager is Van Robert Hoisington and he has managed this government bond mutual fund since 1996.
To view the Zacks Rank and past performance of all government bond mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
Read the full analyst report on SEGSX
Read the full analyst report on SGTAX
Read the full analyst report on OGGAX
Read the full analyst report on SGVAX
Read the full analyst report on WHOSX
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| Market Summary | May 26, 2012 07:15 am ET |
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