When it comes to investing, diversified bond funds are preferred to individual bonds, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
Moreover, mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Below, we share with you three top-ranked diversified bond mutual funds, viz., PGIM Absolute Return Bond Fund (PADAX - Free Report) , BlackRock Floating Rate Income Fund (BFRAX - Free Report) and BBH Limited Duration Fund (BBBMX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered bonds. PADAX advisors may also invest in debt securities that hold ratings below investment grade.
PGIM Absolute Return Bond Fund has three-year annualized returns of 3.1%. Michael J. Collins has been one of the fund managers of PADAX since March 2011.
BlackRock Floating Rate Income Fund invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating-rate loans or second-lien floating-rate loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.1%. BFRAX has an expense ratio of 0.90% compared with the category average of 1.03%.
BBH Limited Duration Fund aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds.
BBH Limited Duration Fund has three-year annualized returns of 2.1%. As of the end of July 2023, BBBMX had 60.9% of its assets invested in Total Misc Bonds.
To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.
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Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
When it comes to investing, diversified bond funds are preferred to individual bonds, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.
Moreover, mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Below, we share with you three top-ranked diversified bond mutual funds, viz., PGIM Absolute Return Bond Fund (PADAX - Free Report) , BlackRock Floating Rate Income Fund (BFRAX - Free Report) and BBH Limited Duration Fund (BBBMX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
PGIM Absolute Return Bond Fund invests most of its assets in debt securities that are considered bonds. PADAX advisors may also invest in debt securities that hold ratings below investment grade.
PGIM Absolute Return Bond Fund has three-year annualized returns of 3.1%. Michael J. Collins has been one of the fund managers of PADAX since March 2011.
BlackRock Floating Rate Income Fund invests the majority of its assets in floating rate investments and other economically similar investments, which enable the fund to achieve a floating rate of income. BFRAX also invests in senior floating-rate loans or second-lien floating-rate loans.
BlackRock Floating Rate Income Fund has three-year annualized returns of 5.1%. BFRAX has an expense ratio of 0.90% compared with the category average of 1.03%.
BBH Limited Duration Fund aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds.
BBH Limited Duration Fund has three-year annualized returns of 2.1%. As of the end of July 2023, BBBMX had 60.9% of its assets invested in Total Misc Bonds.
To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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