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Top 5 Diversified Bond Mutual Funds
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ShareDiversified bond funds provide investors with a convenient and affordable option to hold a portfolio of bonds from different economic sectors. The costs incurred to create a portfolio of individual bonds would be significantly higher than investing in this class of funds. The associated risk also undergoes a decline since volatility in a specific sector has only a partial effect on the fund’s fortunes. The opportunity to reinvest the income generated and a relatively higher level of liquidity also make them secure and attractive investments.
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.
Federated Strategic Income A (STIAX) seeks high current income. The fund invests in three major categories of fixed-income securities. These include domestic securities rated below investment grade as well as those rated higher and foreign securities. The diversified bond mutual fund returned 9.74% in the last one year period.
Joseph M. Balestrino is the fund manager and has managed this diversified bond mutual fund since 1996.
Columbia Strategic Income A (COSIX) invests in three categories of debt securities. These include, U.S. government bonds and assets backed securities; foreign securities, including those issued from emerging markets and corporate debt rated below investment grade. The diversified bond mutual fund has a five year annualized return of 7.43%.
The diversified bond mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.00% compared to a category average of 1.15%.
Virtus Multi-Sector Fixed-Income A (NAMFX) seeks current income and preservation of capital. The fund utilizes at least 80% its assets to purchase a wide range of fixed income securities. It purchases U.S. government securities, investment-grade as well as high yield domestic debt securities. The diversified bond mutual fund returned 11.71% in the last one year period.
As of June 2011, this diversified bond mutual fund held 442 issues, with 1.49% of its total assets invested in Australia(Cmnwlth) 5.75%.
John Hancock Strategic Income A (JHFIX) invests in foreign debt securities of developed and emerging markets, U.S. government and agency securities and U.S. high yield bonds. The fund may also invest in preferred stock and other types of debt securities. The diversified bond mutual fund has a three year annualized return of 11.53%.
Daniel S. Janis, III is the fund manager and has managed this diversified bond mutual fund since 1999.
Oppenheimer Global Strategic Income A (OPSIX) seeks a high level of current income. It invests the majority of its assets in securities issued by the US government and high yield domestic and foreign securities. The diversified bond mutual fund returned 10.9% in the last one year period.
The diversified bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.95% compared to a category average of 1.15%.
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.
Read the full analyst report on STIAX
Read the full analyst report on COSIX
Read the full analyst report on NAMFX
Read the full analyst report on JHFIX
Read the full analyst report on OPSIX
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| Market Summary | May 26, 2012 20:13 pm ET |
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