Mutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting capital invested. Funds of this nature bring a great deal of stability to portfolio which a large proportion of equity, while providing dividends more frequently than individual bonds. U.S government bonds funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor.
Below we will share with you the 5 highest yielding Zacks #1 ranked government bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all government bond funds, then click here.
American Century Inflation-Adjusted Bond (ACITX) seeks inflation protection and total return. A large share of the fund’s assets is utilized to purchase inflation indexed securities. Not more than 20% of its assets are invested in other securities issued by the U.S. Treasury, U.S. government agencies and other entities. The government bond mutual fund returned 6.83% over the last one year period.
As of June 2011, this government bond mutual fund held 140 issues, with 5.85% of its total assets invested in US Treasury Bond 2.375%.
American Century Inflation Protection Bond A (APOAX - Free Report) invests the majority of its assets in inflation linked debt securities. The fund invests in such securities issued by the U.S. Treasury, other government agencies and other entities. The government bond mutual fund has a three year annualized return of 4.79%.
The government bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.74% compared to a category average of 0.84%.
JPMorgan Real Return seeks maximum return and protection from inflation. A large share of the funds assets is utilized to acquire Treasury Inflation Protected Securities (TIPS). It may also invest in derivatives and other inflation-linked debt instruments. The government bond mutual fund returned 7.57% over the last one year period.
The Fund Manager is Steven S. Lear and he has managed this government bond mutual fund since 2009.
ISI North American Government Bond A utilizes the majority of its assets to purchase a wide range of bonds rated investment grade which are issued or guaranteed by the U.S, Canadian and Mexican governments. The government bond mutual fund has a five year annualized return of 6.59%.
The government bond mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.15% compared to a category average of 0.94%.
Legg Mason Western Asset Government Securities A (SGVAX - Free Report) seeks current return. The fund invests a large proportion of its assets in securities issued by the U.S. government and its agencies. U.S. Treasury securities and debt securities issued by federal agencies are some of the categories the fund invests in. The government bond mutual fund returned 7.34% over the last one year period.
The Fund Manager is Mark D. Lindbloom and he has managed this government bond mutual fund since 2006.
To view the Zacks Rank and past performance of all government bond mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at https://www.zacks.com/funds.