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3 Diversified Bond Mutual Funds to Strengthen Your Portfolio – August 3, 2022

By on August 3, 2022 0

Investing in diversified bond funds is more preferred over individual bond investing, as building a portfolio of the second type can be relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive.

Additionally, mutual funds with significant exposure to diversified bonds are excellent choices for investors seeking consistent 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 PIMCO Fixed Income Equity: Series R (FXIRX free report), Ave Maria Bond Fund (AVFX Free report) and BBH Limited Time Fund Class N (BBBMX free report). Each earned a Zacks Mutual Fund Ranking #1 (Strong Buy) and are expected to outperform their peers going forward. Investors can click here to view the full list of funds.

PIMCO Fixed Income Equity: Series R seeks maximum real return as well as preservation of real capital by investing most of its assets with borrowings, if any, in fixed income instruments, including inflation-linked bonds issued by governments and corporations , Treasury Inflation Protected Securities (TIPS), corporate debt securities, convertible securities and corporate commercial paper. FXIRX invests in a portfolio of US and foreign issuers.

PIMCO Fixed Income Equity: Series R has three-year annualized returns of 3.6%. At the end of March 2022, FXIRX had 23.82% of its assets invested in US Treasury inflation-protected securities.

Ave Maria Bond Fund invests most of its assets and borrowings, if any, in high quality debt securities issued by the US government and its agencies, corporations, municipalities and money market instruments. AVEFX invests a small portion of its assets in dividend-paying equity securities, preferred stocks, convertible securities and common stocks of domestic or foreign issuers, regardless of their market capitalization.

Ave Maria Bond Fund has three-year annualized returns of 2.6%. AVEFX has an expense ratio of 0.43% compared to the category average of 0.64%.

BBH Limited Time Fund Class N seeks maximum total return while preserving capital by investing in a diversified portfolio of fixed income instruments such as asset-backed securities, notes and bonds issued by corporations and financial institutions, government agencies and issuers guaranteed by the government. BBBMX invests in US and foreign issues.

BBH Limited Duration Fund Class N has three-year annualized returns of 0.9%. Andrew P. Hofer has been one of BBBMX’s fund managers since February 2011.

To view the Zacks Ranking and past performance of all Diversified Bond Mutual Funds, investors can click here to see the full list of Diversified Bond Mutual Funds.

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