Back to top

Top 5 Zacks #1 Ranked Diversified Bond Mutual Funds

Read MoreHide Full Article

Bonds are the logical choice of investors who are willing to forgo capital growth for a regular income stream. The cost of individually purchasing bonds from various categories may become a particularly expensive proposition. This is why mutual funds are the most affordable method of investing in bonds. Diversified bond mutual funds further reduce the risk involved since their portfolios consist of securities from various classes and sectors. This ensures that any negative fluctuation in a specific sector only has a partial effect on the fund’s fortunes.

Below we will share with you 5 top rated diversified 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 diversified bond funds, investors can click here to see the complete list of funds.

PIMCO Income A (PONAX - Free Report) invests a minimum of 65% of its assets in fixed-income securities from different sectors and with diverse maturity periods. A maximum of half of its assets may be utilized to purchase junk bonds. Not more than 20% of its assets may be invested in instruments with economic linkages to emerging markets. The diversified bond mutual fund returned 6.06% in the last one year period.

Daniel J. Ivascyn is the fund manager and he has managed this diversified bond mutual fund since 2007.

DWS Unconstrained Income A (KSTAX - Free Report) seeks a high level of total return. The fund invests primarily in fixed-income securities issued by the U.S. and foreign governments as well as those issued by domestic and foreign companies. The diversified bond mutual fund returned 6.34% in the last one year period.

The diversified bond mutual fund has an expense ratio of 1.04% compared to a category average of 1.12%.

Brandes Separately Managed Account Reserve Trust (SMARX - Free Report) invests in a wide range of debt securities. These may be issued by governments as well as companies, both domestic and foreign. Not more than 60% of its assets may be invested in foreign dollar securities. The diversified bond mutual fund returned 5.27% in the last one year period.

Timothy M. Doyle is the fund manager and he has managed this diversified bond mutual fund since 2012.

Hartford Strategic Income A (HSNAX - Free Report) seeks total return over the long term as well as current income. The fund purchases both domestic and foreign debt securities, including those issued from emerging markets. It usually holds a wide range of instruments across different sectors. The diversified bond mutual fund returned 6.2% in the last one year period.

As of March 2012, this diversified bond mutual fund held 222 issues, with 3.69% of its total assets invested in U.S. Treasury Bond 5.375%.

Thornburg Strategic Income A (TSIAX - Free Report) invests in a wide range of income generating securities. The fund focuses on acquiring debt securities issued from across the world. These may be of differing quality and have different maturity periods. The diversified bond mutual fund returned 3.06% in the last one year period.

The diversified bond mutual fund has an expense ratio of 1.20% compared to a category average of 1.12%.

To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here to see the complete list of funds.

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.



More from Zacks Mutual Fund Commentary

You May Like

Published in