Back to top

Best of Funds

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Bonds 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, investors can click here to see the complete list of funds.

PIMCO Income A (PONAX - MF report) invests a minimum of 65% of its assets in fixed-income securities from different sectors and with diverse maturity periods. A maximum of half of its assets may be utilized to purchase junk bonds. The diversified bond mutual fund returned 5.92% in the last one year period.

The diversified bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.80% compared to a category average of 1.12%.

Brandes Separately Managed Account Reserve Trust (SMARX - MF report) seeks maximum total return over the long term. The fund invests in a wide range of debt securities. These may be issued by governments as well as companies, both domestic and foreign. The diversified bond mutual fund returned 4.35% in the last one year period.

As of March 2012, this diversified bond mutual fund held 66 issues, with 4.34% of its total assets invested in Jpmorgan Chase FRN.

Optimum Fixed Income A (OAFIX - MF report) invests the majority of its assets in fixed-income securities. The fund purchases a wide range of government securities, corporate debt, municipal and asset-backed securities. The weighted average maturity period of the fund varies between five to ten years. The diversified bond mutual fund returned 6.67% in the last one year period.

Paul Grillo is the fund manager and has managed this diversified bond mutual fund since 2003.

Fidelity Total Bond (FTBFX - MF report) seeks high current income. The fund utilizes the majority of its assets to purchase a wide range of debt securities and related repurchase agreements. The diversified bond mutual fund returned 6.87% in the last one year period.

The diversified bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.45% compared to a category average of 0.92%.

RidgeWorth Total Return Bond A (CBPSX - MF report) primarily purchases securities rated investment grade by at least one domestic securities rating firm. Not more than 20% of its assets are utilized to purchase high-yield debt securities rated investment grade. The diversified bond mutual fund returned 8.86% in the last one year period.

Adrien Webb is the fund manager and he has managed this diversified bond mutual fund since 2002.

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

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.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RAMBUS INC RMBS 12.43 +5.43%
BOFL HOLDING BOFI 84.98 +4.58%
DIXIE GROUP DXYN 15.23 +3.75%
SHORETEL INC SHOR 8.02 +2.95%
DAIMLER AG DDAIF 92.96 +2.88%