Mutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting capital invested. Funds which are part of this category bring a great deal of stability to portfolio which a large proportion of equity, while providing dividends more frequently than individual bonds. U.S government bonds funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor.
Below we will share with you 5 top rated government bond 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 government bond funds, investors can click here to see the complete list of funds.
Homestead Short-Term Government (HOSGX) seeks current income. A majority of its assets are invested in fixed-income securities which are backed by the U.S. government. The fund also invests a portion of its assets in municipal bonds, collateralized mortgage obligations, asset-backed securities, corporate bonds and money market securities. The government bond mutual returned 1.76% over the last one year period.
The government bond mutual fund has an expense ratio of 0.69% compared to a category average of 0.85%.
Western Asset Mortgage Backed A (SGVAX) invests a large share of its assets in mortgage-backed securities issued by Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac). It also purchases U.S. government agencies such as Government National Mortgage Association (Ginnie Mae). The government bond mutual fund returned 7.52% over the last one year period.
As of March 2013, this government bond mutual fund held 621 issues, with 11.17% of its total assets invested in 0wp253511 Irs Usd R V 03mlibor 1 Vanilla.
JPMorgan Short Duration Bond Select (HLLVX) seeks preservation of capital and current income. The fund invests most of its assets in various investment grade fixed income securities. Usually, the tenure of the portfolio is three years. The government bond mutual fund returned 0.33% over the last one year period.
The Fund Manager is Gregg F. Hrivnak and he has managed this government bond fund since 2006.
Managers Short Duration Government (MGSDX) invests a majority of its assets in bonds issued by the U.S. government or its agencies. The fund may also invest in derivatives or synthetic securities which have bond-like characteristics. The government bond mutual fund returned 0.23% over the last one year period.
The government bond mutual fund has an expense ratio of 0.81% compared to a category average of 0.62%.
Driehaus Active Income (LCMAX) seeks capital growth and current income. The fund invests its assets in U.S. fixed income and floating rate securities. Securities may or may not be of investment grade and may not be necessarily rated by rating agency. The government bond mutual fund returned 5.05% over the last one year period.
The Fund Manager is K.C. Nelson and he has managed this government bond fund since 2009.
To view the Zacks Rank and past performance of all government bond 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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