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Top 5 Diversified Bond Mutual Funds
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ShareBonds are the logical choice of investors who are willing to forgo capital growth for a regular income stream. The cost of individually purchasing bonds from various categories may become a particularly expensive proposition. This is why mutual funds are the most affordable method of investing in bonds. Diversified bond mutual funds further reduce the risk involved since their portfolios consist of securities from various classes and sectors. This ensures that any negative fluctuation in a specific sector only has a partial effect on the fund’s fortunes.
Below we will share with you 5 top rated diversified 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 diversified bond funds, then click here.
Putnam Diversified Income A (PDINX) seeks current income as well as preservation of capital. Between 15 to 65% of its assets are invested in domestic and foreign government securities and corporate investment grade bonds. The diversified bond mutual fund returned 36.27% over the last one year period.
The diversified bond mutual fund has a minimum initial investment of $500 and an expense ratio of 1.09% compared to a category average of 1.13%.
Oppenheimer Strategic Income A (OPSIX) invests the majority of its assets in US government securities and high yield domestic and foreign securities. It may invest all its assets in any one of these sectors and may not invest at all in a sector at a given point of time. The diversified bond mutual fund returned 20.5% over the last one year period.
Arthur P. Steinmetz is the fund manager and has managed this diversified bond mutual fund since 1989.
Baird Core Plus Bond (BCOSX) seeks an annual rate of total return which is higher than that of the Barclays Capital U.S. Universal Bond Index. The fund invests heavily in domestic securities issued by the government or corporate entities. The diversified bond mutual fund returned 16.28% over the last one year period.
As of June 2010, this diversified bond mutual fund held 371 issues, with 7.40% total assets invested in United States Treasury Bonds 6.25%.
Delaware Optimum Fixed Income A (OAFIX) invests at least 80% of the fund’s assets in fixed-income securities. It purchases a wide range of government securities, corporate debt, municipal and asset-backed securities. The diversified bond mutual fund has a three year annualized return of 7.47%.
The diversified bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.31% compared to a category average of 0.94%.
Virtus Multi-Sector Fixed-Income A (NAMFX) seeks current income as well as preservation of capital. At least 80% of the fund’s assets are invested in fixed income securities. It purchases U.S. government securities, investment-grade as well as high yield domestic debt securities. The diversified bond mutual fund has a five year annualized return of 5.24%.
David L. Albrycht is the fund manager and has managed this diversified bond mutual fund since 1994.
To view the Zacks Rank and past performance of all diversified 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 PDINX
Read the full analyst report on OPSIX
Read the full analyst report on BCOSX
Read the full analyst report on OAFIX
Read the full analyst report on NAMFX
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| Market Summary | May 26, 2012 08:24 am ET |
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