Federated Investors has used a disciplined approach to deliver superior value to investors since its inception in 1955. The company is now one of the largest investment managers in the U.S. managing more than $377.3 billion worth of assets. Federated offers a wide range of products, including domestic and international equity, fixed-income and money market funds. These products are distributed through a large network of around 4,700 financial intermediaries and institutions.
Below we will share with you 5 top rated Federated mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all Federated funds, investors can click here to see the complete list of funds.
Federated High Yield Trust Service (FHYTX) seeks current income growth. The fund invests primarily in high-yield U.S. corporate bonds with low ratings. A maximum of 20% of assets is parked in convertible and equity securities. The fund has a three year annualized return of 13.71%.
The Fund Manager is Gene E. Neavin and he has managed this Federated mutual fund since 2011.
Federated MDT Stock (FSTKX) invests a majority of assets in common stock of domestic companies. Most of these companies have large market capitalizations and are listed on the Russell 1000 Value Index. The fund has a three year annualized return of 18.04%.
The Federated mutual fund has an expense ratio of 0.99% compared to a category average of 1.21%.
Federated Capital Income A (CAPAX) seeks income growth on a long-term basis along with current income. The fund invests in both equity and fixed income securities which have the potential to provide high returns. Equity securities of those companies are chosen which are established and whose market capitalizations range from mid-cap and large cap. Debt securities which provide high dividend yields and are expected to continue the trend are selected for investment. The fund has a three year annualized return of 11.43%.
As of March 2013, this Federated mutual fund held 115 issues, with 25.02% of its total assets invested in High Yield Bond Portfolio.
Federated Bond A (FDBAX) invests primarily in investment grade fixed-income securities. A maximum of 35% of assets is invested in junk bonds. Investments are also parked in government securities which are backed by the U.S Government. It may also invest in derivatives. The fund has a three year annualized return of 7.93%.
The Fund Manager is Joseph M. Balestrino and he has managed this Federated mutual fund since 1993.
Federated Kaufmann A (KAUAX) seeks capital growth. The fund invests in those small and mid-cap companies which are listed on national security exchanges; the Nasdaq and the over counter market. Not more than 30% of its assets are invested in foreign securities. The fund may also invest in exchange-traded-funds, fixed-income securities and American Depository Receipts (ADRs). The fund has a three year annualized return of 12.32%.
The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.95% compared to a category average of 1.35%.
To view the Zacks Rank and past performance of all Federated mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
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