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The second type of portfolio can be relatively more expensive to build, so investing in diversified bond funds is preferable to investing in individual bonds. Higher liquidity makes diversified bond funds more attractive.
In addition, diversified bonds and high-risk mutual funds are excellent choices for investors seeking stable returns with a relatively low level of risk. Investing in funds that hold portfolios of bonds issued across different market sectors reduces sector-specific risk.
Below, we share with you three top-rated different bond mutual funds. Ave Maria Bond Fund Section R (AVEFX – free report), Pacific Funds Strategic Income – Advisory Division (PLSFX – free report) and PGIM Absolute Return Bond Fund Class A (PADAX – free report). Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to view the full list of funds.
Ave Maria Bond Fund Section R It invests most of its assets with debt, if any, in investment-grade debt securities issued by the U.S. government and its agencies, such as corporate, municipal and money market instruments. AVEFX Advisors invests a small portion in equity securities of domestic or foreign issuers regardless of their market capitalization.
Ave Maria Bond Fund Class R has a three-year annualized return of 2.80%. In the year As of the end of June 2022, AVEFX had 18.75% of its assets invested in stocks.
Pacific Funds Strategic Income – Advisory Division He invests the majority of his net assets in a portfolio of debt securities based on his advisors’ view of the market. PLSFX Advisors offers various amounts of floating rate loans and investment grade debt instruments such as corporate debt securities, asset-backed securities, mortgage-backed securities, US government securities and agency securities.
Pacific Funds Strategic Income – Advisory Division has a three-year annualized return of 1.3%. PLSFX has an expense ratio of 0.69% compared to the category average of 0.97%.
PGIM Absolute Return Bond Fund Class A It seeks positive returns regardless of market conditions. PADAX Advisors may invest in debt securities rated below investment grade or junk bonds.
PGIM Absolute Return Bond Fund Division Afundhas three-year annualized returns of 0.4%. Michael J. Collins has been one of the PADAX fund managers since March 2011.
To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here to view a list of diversified bond mutual funds.
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