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3 Diversified Bond Mutual Funds to Add Safety to Your Portfolio
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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.
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.
Osterweis Strategic Income fund seeks to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. OSTIX invests primarily in income-bearing securities, including a wide range of debt and dividend-paying equity securities.
Osterweis Strategic Income has three-year annualized returns of 4.5%. As of the end of September 2024, OSTIX held 1.3% of its net assets in Delta Air Lines, Inc.
Ave Maria Bond fund seeks preservation of principal with a reasonable level of current income. AVEFX invests primarily (80% or more of its net assets) in investment-grade debt securities of primarily domestic issuers, including corporations, government agencies and municipalities, as well as mortgage-backed and asset-backed securities.
Ave Maria Bond has three-year annualized returns of 2.6%. AVEFX has an expense ratio of 0.42%.
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 has three-year annualized returns of 4.3%. Andrew P. Hofer has been one of the fund managers of BBBMX since February 2011.
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3 Diversified Bond Mutual Funds to Add Safety to Your Portfolio
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.
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., Osterweis Strategic Income (OSTIX - Free Report) , Ave Maria Bond (AVEFX - Free Report) and BBH Limited Duration (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.
Osterweis Strategic Income fund seeks to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. OSTIX invests primarily in income-bearing securities, including a wide range of debt and dividend-paying equity securities.
Osterweis Strategic Income has three-year annualized returns of 4.5%. As of the end of September 2024, OSTIX held 1.3% of its net assets in Delta Air Lines, Inc.
Ave Maria Bond fund seeks preservation of principal with a reasonable level of current income. AVEFX invests primarily (80% or more of its net assets) in investment-grade debt securities of primarily domestic issuers, including corporations, government agencies and municipalities, as well as mortgage-backed and asset-backed securities.
Ave Maria Bond has three-year annualized returns of 2.6%. AVEFX has an expense ratio of 0.42%.
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 has three-year annualized returns of 4.3%. Andrew P. Hofer has been one of the fund managers of BBBMX since February 2011.
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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