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3 Strong Buy Investment-Grade Intermediate Bond Mutual Funds
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Bonds that are rated 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) by bond rating firms, like Standard & Poor's, are usually known as investment grade bonds. Also, bond funds are considered good investment propositions in a low-rate environment.
Intermediate-term investment grade bond mutual funds provide excellent opportunities for investors interested in safer moderate returns. Investment grade bonds are generally considered safer than those rated below investment grade, which are commonly known as "junk" bonds.
Meanwhile, fixed income securities having average maturity period between three and 10 years are classified as intermediate securities. These funds assure more stability and provide higher returns than what is offered in the short term. Thus, intermediate-term funds are safer than small-term funds.
MFS Corporate Bond I (MBDIX - Free Report) seeks growth of income and capital. MBDIX invests the bulk of its assets in corporate bonds. The fund may also invest in government bonds and below investment grade debt securities. MFS Corporate Bond I has year-to-date, three-year and five-year annualized returns of 8.9%, 4.9% and 5.4%, respectively.
MBDIXhas an expense ratio of 0.57% compared to the category average of 0.80%.
Payden Corporate Bond (PYACX - Free Report) invests in a wide range of income-producing securities and dent securities. PYACX invests the lion’s share of its assets in corporate debt instruments. The fund seeks return through appreciation of capital. Payden Corporate Bond has year-to-date, three-year and five-year annualized returns of 9.5%, 6.7% and 6.6%, respectively.
James Wong is one of the fund managers of PYACX since 2014.
MFS Corporate Bond R4 (MFBJX - Free Report) seeks appreciation of income and capital. MFBJX invests the majority of its assets in corporate debt securities and in government bonds. MFS Corporate Bond R4 has year-to-date, three-year and five-year annualized returns of 8.9%, 5% and 5.4%, respectively.
As of August 2016, MFBJX held 385 issues with 1.05% of its assets invested in Medtronic 3.5%.
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3 Strong Buy Investment-Grade Intermediate Bond Mutual Funds
Bonds that are rated 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) by bond rating firms, like Standard & Poor's, are usually known as investment grade bonds. Also, bond funds are considered good investment propositions in a low-rate environment.
Intermediate-term investment grade bond mutual funds provide excellent opportunities for investors interested in safer moderate returns. Investment grade bonds are generally considered safer than those rated below investment grade, which are commonly known as "junk" bonds.
Meanwhile, fixed income securities having average maturity period between three and 10 years are classified as intermediate securities. These funds assure more stability and provide higher returns than what is offered in the short term. Thus, intermediate-term funds are safer than small-term funds.
Below we share with you three top-rated intermediate-term investment grade bond mutual funds. 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.
MFS Corporate Bond I (MBDIX - Free Report) seeks growth of income and capital. MBDIX invests the bulk of its assets in corporate bonds. The fund may also invest in government bonds and below investment grade debt securities. MFS Corporate Bond I has year-to-date, three-year and five-year annualized returns of 8.9%, 4.9% and 5.4%, respectively.
MBDIXhas an expense ratio of 0.57% compared to the category average of 0.80%.
Payden Corporate Bond (PYACX - Free Report) invests in a wide range of income-producing securities and dent securities. PYACX invests the lion’s share of its assets in corporate debt instruments. The fund seeks return through appreciation of capital. Payden Corporate Bond has year-to-date, three-year and five-year annualized returns of 9.5%, 6.7% and 6.6%, respectively.
James Wong is one of the fund managers of PYACX since 2014.
MFS Corporate Bond R4 (MFBJX - Free Report) seeks appreciation of income and capital. MFBJX invests the majority of its assets in corporate debt securities and in government bonds. MFS Corporate Bond R4 has year-to-date, three-year and five-year annualized returns of 8.9%, 5% and 5.4%, respectively.
As of August 2016, MFBJX held 385 issues with 1.05% of its assets invested in Medtronic 3.5%.
To view the Zacks Rank and past performance of all intermediate-term investment grade bond funds, investors can click here to see the complete list of funds.
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