3 Best-Rated Diversified Bond Mutual Funds To Keep An Eye On

By | April 13, 2016

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Diversified bond mutual funds provide excellent opportunities to investors looking for steady returns with a relatively low level of risk. These funds provide exposure to a wide range of market sectors, thus reducing sector-specific risks. A relatively higher level of liquidity also makes diversified bond funds more attractive. Meanwhile, investing in diversified bond funds is preferred to investing in individual bonds, as building a portfolio of the second type may prove more expensive than the former. 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 . PIMCO Income Fund A (MUTF: PONAX ) seeks maximum current income. The fund invests a minimum of 65% of its assets in fixed-income securities from a wide range of sectors. These securities may include options, futures contracts and swap agreements. PONAX may invest not more than half of its assets in securities that are rated below investment grade. It has a three-year annualized return of almost 4%. As of December 2015, the fund held 4022 issues, with 7.76% of its total assets invested in Irs Usd 2.75000 06/17/15-10y Cme. Nuveen Preferred Securities Fund A (MUTF: NPSAX ) invests a major portion of its assets in preferred securities. The advisor invests a minimum 25% of its assets in the preferred securities of companies primarily involved in financial services. NPSAX invests a minimum of half of its assets in securities rated investment grade. It is a non-diversified fund and has a three-year annualized return of 4.3%. The fund has an expense ratio of 1.06%, as compared to the category average of 1.37%. PIMCO Fixed Income Shares C (MUTF: FXICX ) seeks to maximize total return with preservation of capital. It invests the majority of its assets in fixed-income securities, including corporate debt obligations, inflation-indexed securities of corporate bodies and structured notes. The fund allocates its assets throughout the globe. It has a three-year annualized return of 0.9%. Curtis A. Mewbourne has been the fund manager of FXICX since 2009. Original Post Scalper1 News

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