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Buy These 3 Top-Ranked Diversified Bond Mutual Funds to Hedge Risk
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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.
Nuveen Preferred Securities Fund seeks a high level of current income as well as total return by investing most of its assets, along with borrowing, if any, in preferred securities and other income-producing securities. NPSAX advisors also invest in companies principally engaged in financial services, and securities rated investment grade and below-investment grade in various proportions.
Nuveen Preferred Securities Fund has three-year annualized returns of 10.3%. As of the end of February 2026, NPSAX had 39% of its assets invested in Miscellaneous Bonds.
T. Rowe Price Global Multi-sector Bond Fund invests most of its assets, along with borrowings, if any, in foreign bonds of governments or companies that have substantial business outside the United States. PRSNX advisors generally invest in a variety of issues to enhance income and achieve capital growth.
T. Rowe Price Global Multi-sector Bond Fund has three-year annualized returns of 7%. PRSNX has an expense ratio of 0.64%.
BBH Limited Duration Fund invests most of its net assets in a diversified portfolio of fixed-income securities, which includes floating or variable-rate debt instruments. BBBMX advisors generally invest in issues that are performing well and available at an attractive valuation.
BBH Limited Duration Fund has three-year annualized returns of 6.2%. Paul Kunz has been the fund manager of BBBMX since the end of February 2023.
View the Zacks #1 Rank List
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Buy These 3 Top-Ranked Diversified Bond Mutual Funds to Hedge Risk
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, namely Nuveen Preferred Securities Fund (NPSAX - Free Report) , T. Rowe Price Global Multi-sector Bond Fund (PRSNX - Free Report) and BBH Limited Duration Fund (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.
Nuveen Preferred Securities Fund seeks a high level of current income as well as total return by investing most of its assets, along with borrowing, if any, in preferred securities and other income-producing securities. NPSAX advisors also invest in companies principally engaged in financial services, and securities rated investment grade and below-investment grade in various proportions.
Nuveen Preferred Securities Fund has three-year annualized returns of 10.3%. As of the end of February 2026, NPSAX had 39% of its assets invested in Miscellaneous Bonds.
T. Rowe Price Global Multi-sector Bond Fund invests most of its assets, along with borrowings, if any, in foreign bonds of governments or companies that have substantial business outside the United States. PRSNX advisors generally invest in a variety of issues to enhance income and achieve capital growth.
T. Rowe Price Global Multi-sector Bond Fund has three-year annualized returns of 7%. PRSNX has an expense ratio of 0.64%.
BBH Limited Duration Fund invests most of its net assets in a diversified portfolio of fixed-income securities, which includes floating or variable-rate debt instruments. BBBMX advisors generally invest in issues that are performing well and available at an attractive valuation.
BBH Limited Duration Fund has three-year annualized returns of 6.2%. Paul Kunz has been the fund manager of BBBMX since the end of February 2023.
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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