4 Best-Rated Diversified Bond Mutual Funds To Invest In

By | November 25, 2015

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Diversified bond funds provide investors with a convenient and affordable option to hold a portfolio of bonds from different economic sectors. Costs incurred to create a portfolio of individual bonds would be significantly higher than investing in this class of funds. The associated risk also declines since volatility in a specific sector has only a partial effect on the funds’ fortunes. The opportunity to reinvest the income generated and a relatively higher level of liquidity also make them a secure and attractive investment. Below we share with you 4 top-ranked diversified bond mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the funds to outperform their peers in the future. MassMutual Premier Short-Duration Bond Fund (MUTF: MSTDX ) seeks high level of total return. MSTDX maintains a diversified portfolio by investing predominantly in fixed income securities. MSTDX invests a major portion of its assets in investment grade securities. MSTDX is expected to maintain a dollar-weighted average maturity of three years or less. MSTDX may invest not more than 10% of its assets in securities below investment grade. The MassMutual Premier Short-Duration Bond Fund has returned almost 1% over the past one year. MSTDX has an expense ratio of 0.52% compared to a category average of 0.81%. DoubleLine Core Fixed Income Fund N (MUTF: DLFNX ) invests the majority of its assets in securities that are expected to provide fixed income. Around one-third of DLFNX’s assets get invested in securities, including junk bonds, bank loans and credit default swaps. The DoubleLine Core Fixed Income Fund N has returned 1.4% over the past one year. Jeffrey E. Gundlach is one of the fund managers and has managed DLFNX since 2010. Voya Intermediate Bond Fund A (MUTF: IIBAX ) seeks to provide maximum total return. IIBAX invests a major portion of its assets in investment-grade bonds, including corporate, government and mortgage bonds. The Voya Intermediate Bond Fund A returned 1.1% over the past one year. IIBAX has an expense ratio of 0.66% compared to a category average of 0.82%. RidgeWorth Seix Total Return Bond Fund A (MUTF: CBPSX ) invests a majority of its assets in fixed-income derivatives, including debt securities issued by the government and its affiliates, corporate bonds and asset-backed securities. CBPSX invests in debt securities throughout the globe, including those from emerging economies. CBPSX may invest a maximum of 20% of its assets in high-yield securities that are rated below investment grade. The RidgeWorth Seix Total Return Bond Fund A returned 0.9% in the last one-year period. As of October 2015, CBPSX held 278 issues, with 10.11% of its total assets invested in US Treasury Note 2%. Original Post Scalper1 News

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