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Mutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting capital invested. Funds which are part of this category bring a great deal of stability to portfolio which a large proportion of equity, while providing dividends more frequently than individual bonds. U.S government bonds funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor.
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, investors can click here to see the complete list of funds.
Fidelity Spartan Long-Term Treasury Bond Index (FLBIX - MF report) invests at least 80% of its assets in securities which are part of the Barclays Capital U.S. Long Treasury Bond index. The dollar-weighted average maturity period of the portfolio is at least 10 years or more. The government bond mutual fund returned 32.29% over the last one year period.
The Fund Manager is Curt Hollingsworth and he has managed this government bond fund since 2009.
Dreyfus US Treasury Long-Term (DRGBX - MF report) seeks current income and capital growth. The fund invests a substantially high proportion of its assets in securities issued or guaranteed by the U.S. government or its agencies. The government bond mutual fund returned 31.94% over the last one year period.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.65% compared to a category average of 0.84%.
Wasatch-Hoisington US Treasury (WHOSX - MF report) invests at least 90% of its assets in U.S Treasury securities and repurchase agreements backed by such instruments. The fund also purchases long term U.S. Treasury Bonds. The government bond mutual fund returned 46.03% over the last one year period.
The Fund Manager is Van Robert Hoisington and he has managed this government bond fund since 1996.
Federated US Government Bond seeks total return. The fund focuses on acquiring U.S. government securities as well as treasury securities and related derivatives. It also invests in mortgage-backed securities issued or backed by the U.S. government. The government bond mutual fund returned 23.33% over the last one year period.
As of March 2012, this government bond mutual fund held 19 issues, with 17.97% of its total assets invested in US Treasury Bond 4.25%.
Vanguard Long-Term Treasury Investor (VUSTX - MF report) utilizes a large share of its assets to purchase securities issued by the U.S. Treasury, including bills, bond and notes. The fund aims at maintaining a weighted average maturity period of 15 to 30 years. The government bond mutual fund returned 32.36% over the last one year period.
The government bond mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.20% compared to a category average of 0.84%.
To view the Zacks Rank and past performance of all government 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.