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3 Diversified Bond Mutual Funds for a Strong Portfolio
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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.
Moreover, investing in diversified bond funds is preferred to individual bond investing, 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.
Ancora Income Fund primarily invests in income-producing closed-end funds and convertible securities of large, small and mid-sized companies. AAIIX only invests in securities of companies with a market cap of more than $500 million. The fund has returned 1.8% over the past three years.
Kevin Gale has been one of the fund managers of AAIIX since 2020.
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. The fund has returned 2% over the past three years.
As of May 2023, BBBMX had 61.7% of its assets invested in Total Misc Bonds.
Ave Maria Bond Fund invests primarily in investment-grade debt securities of domestic issuers, including the U.S. government and its agencies and instrumentalities, corporations and municipalities and money market instruments. AVEFX may invest part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 2.6% over the past three years.
AVEFX has an expense ratio of 0.41% compared with the category average of 0.64%.
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3 Diversified Bond Mutual Funds for a Strong Portfolio
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.
Moreover, investing in diversified bond funds is preferred to individual bond investing, 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.
Below, we share with you three top-ranked diversified bond mutual funds, namely Ancora Income Fund (AAIIX - Free Report) , BBH Limited Duration Fund (BBBMX - Free Report) and Ave Maria Bond Fund (AVEFX - Free Report) . Each has 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.
Ancora Income Fund primarily invests in income-producing closed-end funds and convertible securities of large, small and mid-sized companies. AAIIX only invests in securities of companies with a market cap of more than $500 million. The fund has returned 1.8% over the past three years.
Kevin Gale has been one of the fund managers of AAIIX since 2020.
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. The fund has returned 2% over the past three years.
As of May 2023, BBBMX had 61.7% of its assets invested in Total Misc Bonds.
Ave Maria Bond Fund invests primarily in investment-grade debt securities of domestic issuers, including the U.S. government and its agencies and instrumentalities, corporations and municipalities and money market instruments. AVEFX may invest part of its net assets in preferred stocks, common stocks paying dividends and securities convertible into common stock. The fund has returned 2.6% over the past three years.
AVEFX has an expense ratio of 0.41% compared with the category average of 0.64%.
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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