We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Diversified Bond Mutual Funds for Mitigating Risks
Read MoreHide Full Article
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.
Moreover, investing in diversified bond funds is 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.
Aristotle Strategic Income invests in debt instruments that generate income. PLSFX’s allocations to non-investment grade debt instruments and investment grade debt instruments vary on the advisor’s view of market conditions. The fund has returned 1.3% over the past three years.
Michael Marzouk has been one of the fund managers of PLSFX since 2016.
BBH Limited Duration 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 3.1% over the past three years.
As of January 2024, BBBMX had 59.3% of its assets invested in Total Misc Bonds.
BlackRock Floating Rate Income invests primarily in floating rate investments and investments that are the economic equivalent of floating rate investments. The fund has returned 5.4% over the past three years.
BFRAX has an expense ratio of 0.93% compared with the category average of 0.98%.
Image: Bigstock
3 Diversified Bond Mutual Funds for Mitigating Risks
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.
Moreover, investing in diversified bond funds is 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.
Below, we share with you three top-ranked diversified bond mutual funds, namely Aristotle Strategic Income (PLSFX - Free Report) , BBH Limited Duration (BBBMX - Free Report) and BlackRock Floating Rate Income (BFRAX - Free Report) . Each has 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.
Aristotle Strategic Income invests in debt instruments that generate income. PLSFX’s allocations to non-investment grade debt instruments and investment grade debt instruments vary on the advisor’s view of market conditions. The fund has returned 1.3% over the past three years.
Michael Marzouk has been one of the fund managers of PLSFX since 2016.
BBH Limited Duration 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 3.1% over the past three years.
As of January 2024, BBBMX had 59.3% of its assets invested in Total Misc Bonds.
BlackRock Floating Rate Income invests primarily in floating rate investments and investments that are the economic equivalent of floating rate investments. The fund has returned 5.4% over the past three years.
BFRAX has an expense ratio of 0.93% compared with the category average of 0.98%.
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.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>