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3 Top-Ranked Diversified Bond Mutual Funds for Mitigating Risk
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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.
PGIM Absolute Return Bond fund seeks positive return regardless of the market conditions by investing most of its assets along with borrowings, if any, in debt securities and investments that provide exposure to bonds. PADAX advisors may also invest in debt securities rated below investment or junk bonds.
PGIM Absolute Return Bondfund has three-year annualized returns of 3.4%. As of the end of October 2023, PADAX had 43.5% of its assets invested in Miscellaneous Bonds.
Goldman Sachs Strategic Income Fund invests most of its assets in a diversified portfolio of domestic and foreign investment grade and non-investment grade fixed-income securities. GSZAX advisors generally invest in U.S. and non-U.S government sovereign debt securities, agency securities, corporate debt securities, privately issued adjustable-rate and fixed-rate mortgage-backed securities, asset-backed securities, custodial receipts, municipal securities, loan participations and loan assignments and convertible securities.
Goldman Sachs Strategic Income Fund has three-year annualized returns of 2.8%. GSZAX has an expense ratio of 1.05%.
Ancora Income fund invests mostly in debt securities, preferred stocks, high dividend-bearing common shares, as well as common and preferred shares of closed-end investment companies with market capitalization of more than $500 million. AAIIX also invests in closed-end funds and convertible securities of large, small and mid-sized companies.
Ancora Income fund has three-year annualized returns of 1.7%. Kevin Gale has been the fund manager of AAIIX since end of April 2020.
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3 Top-Ranked Diversified Bond Mutual Funds for Mitigating Risk
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 PGIM Absolute Return Bond (PADAX - Free Report) , Goldman Sachs Strategic Income Fund (GSZAX - Free Report) and Ancora Income (AAIIX - 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 seeks positive return regardless of the market conditions by investing most of its assets along with borrowings, if any, in debt securities and investments that provide exposure to bonds. PADAX advisors may also invest in debt securities rated below investment or junk bonds.
PGIM Absolute Return Bondfund has three-year annualized returns of 3.4%. As of the end of October 2023, PADAX had 43.5% of its assets invested in Miscellaneous Bonds.
Goldman Sachs Strategic Income Fund invests most of its assets in a diversified portfolio of domestic and foreign investment grade and non-investment grade fixed-income securities. GSZAX advisors generally invest in U.S. and non-U.S government sovereign debt securities, agency securities, corporate debt securities, privately issued adjustable-rate and fixed-rate mortgage-backed securities, asset-backed securities, custodial receipts, municipal securities, loan participations and loan assignments and convertible securities.
Goldman Sachs Strategic Income Fund has three-year annualized returns of 2.8%. GSZAX has an expense ratio of 1.05%.
Ancora Income fund invests mostly in debt securities, preferred stocks, high dividend-bearing common shares, as well as common and preferred shares of closed-end investment companies with market capitalization of more than $500 million. AAIIX also invests in closed-end funds and convertible securities of large, small and mid-sized companies.
Ancora Income fund has three-year annualized returns of 1.7%. Kevin Gale has been the fund manager of AAIIX since end of April 2020.
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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