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Investing in diversified bond funds is more preferred to individual bond 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.
Moreover, 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 that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
BBH Limited Duration Fund aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds. The fund has returned 0.7% over the past three years.
As of July 2022, BBBMX had 64.3% of its assets invested in Total Misc Bonds.
Virtus Newfleet Senior Floating Rate Fund seeks high total return from both current income and capital appreciation by investing in non-investment grade bank loans, including senior floating rate loans, with a focus on higher quality companies within a rating tier. PSFRX may also invest in foreign securities. The fund has returned 1.4% over the past three years.
Francesco A. Ossino has been one of the lead managers of PSFRX since 2012.
BlackRock Floating Rate Income Portfolio invests primarily in floating rate investments and equivalents, which enables it to achieve a floating rate of income. BFRAX may also purchase, without limitation, participations or assignments in senior floating rate loans or second lien floating rate loans. The fund has returned 1.7% over the past three years.
BFRAX has an expense ratio of 0.89% compared with the category average of 1.03%.
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3 Diversified Bond Mutual Funds for Steady Growth
Investing in diversified bond funds is more preferred to individual bond 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.
Moreover, 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 that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk.
Below, we share with you three top-ranked diversified bond mutual funds, namely BBH Limited Duration Fund (BBBMX - Free Report) , Virtus Newfleet Senior Floating Rate Fund (PSFRX - Free Report) and BlackRock Floating Rate Income Portfolio (BFRAX - 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 see the complete list of funds.
BBH Limited Duration Fund aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds. The fund has returned 0.7% over the past three years.
As of July 2022, BBBMX had 64.3% of its assets invested in Total Misc Bonds.
Virtus Newfleet Senior Floating Rate Fund seeks high total return from both current income and capital appreciation by investing in non-investment grade bank loans, including senior floating rate loans, with a focus on higher quality companies within a rating tier. PSFRX may also invest in foreign securities. The fund has returned 1.4% over the past three years.
Francesco A. Ossino has been one of the lead managers of PSFRX since 2012.
BlackRock Floating Rate Income Portfolio invests primarily in floating rate investments and equivalents, which enables it to achieve a floating rate of income. BFRAX may also purchase, without limitation, participations or assignments in senior floating rate loans or second lien floating rate loans. The fund has returned 1.7% over the past three years.
BFRAX has an expense ratio of 0.89% compared with the category average of 1.03%.
To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.
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