3 Best-Rated Diversified Bond Mutual Funds To Consider

By | March 7, 2016

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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, which maintain a portfolio of bonds issued across a wide range of market sectors, also reduces sector-specific risk. Moreover, investing in diversified bond funds is preferred to individual bonds’ 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. Below we share with you three best-ranked diversified bond mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond funds . JHancock Income C (MUTF: JSTCX ) seeks a high level of current income. JHFIX mostly invests in three types of securities. These include corporate debt securities from both developed and emerging markets, U.S. government securities and domestic high yield bonds. JHFIX may invest a maximum 10% of its assets in domestic or foreign common stocks. The JHancock Income C fund has a three-year annualized return of 1.2%. As of December 2015, JSTCX held 423 issues, with 1.2% of its total assets invested in New Zealand (Govt) 6%. PIMCO Fixed Income SHares M (MUTF: FXIMX ) may invest 100% of its assets in mortgage- and other asset-backed securities that are believed to provide a fixed level of income. These securities include commercial mortgage-backed securities, collateralized mortgage obligations and mortgage pass-through securities. The PIMCO Fixed Income SHares M fund has a three-year annualized return of 2.1%. Curtis A. Mewbourne is the fund manager of FXIMX since 2009. Columbia Strategic Income C (MUTF: CLSCX ) seeks total return that includes current income and capital appreciation. CLSCX invests in U.S. government bonds, investment grade corporate bonds, mortgage backed securities, inflation-protected securities, convertible securities as well as foreign government, sovereign and quasi-sovereign debt investments. The Columbia Strategic Income C fund has a three-year annualized return of 0.9%. As of December 2015, CLSCX held 910 issues, with 3.41% of its total assets invested in FNMA. To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here to see the complete list of fund . 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. Pick the best mutual funds with the Zacks Rank. Original Post Scalper1 News

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