There are plenty of choices in the High Yield - Bonds category, but where should you start your research? Well, one fund that might be worth investigating is Northern Multi-Managed High Yield Opportunity (NMHYX Quick QuoteNMHYX - Free Report) . NMHYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

NMHYX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.

History of Fund/Manager

Northern is based in Chicago, IL, and is the manager of NMHYX. Northern Multi-Managed High Yield Opportunity made its debut in October of 2009, and since then, NMHYX has accumulated about $159.48 million in assets, per the most up-to-date date available. The fund's current manager, Neal Barrett, has been in charge of the fund since May of 2023.

Performance

Investors naturally seek funds with strong performance. NMHYX has a 5-year annualized total return of 7.1% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 5.72%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. NMHYX's standard deviation over the past three years is 7.23% compared to the category average of 7.05%. Over the past 5 years, the standard deviation of the fund is 6.93% compared to the category average of 6.73%. This makes the fund more volatile than its peers over the past half-decade.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, NMHYX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.86%. From a cost perspective, NMHYX is actually cheaper than its peers.

This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $50.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Northern Multi-Managed High Yield Opportunity ( NMHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

For additional information on the High Yield - Bonds area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into NMHYX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.