U.S. Markets closed

Top 5 Zacks #1 Ranked Federated Mutual Funds

Zacks Equity Research

Founded in 1955, Federated Investors is one of the largest investment managers in the U.S. With more than $355 billion worth of assets under management, the company has used a disciplined approach to deliver superior value to investors. Federated offers a wide range of products, including domestic and international equity, fixed-income and money market funds. These products are distributed through more than 5,200 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 Strategic Income A (STIAX) invests in three different kinds of fixed-income securities. These include domestic securities rated investment grade, junk bonds and foreign debt. It may invest a maximum of 50% of its assets in any one of these categories. The fund has a three year annualized return of 9.61%.

The Fund Manager is Joseph M. Balestrino and he has managed this Federated mutual fund since 1996.

Federated International Leaders A (FGFAX) seeks capital appreciation over the long term. The fund invests in foreign companies and concentrates on purchasing foreign stocks from developed markets. It may also purchase equity in companies from developed markets, including the United States. The fund has a three year annualized return of 5.64%.

The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.49% compared to a category average of 1.29%.

Federated Emerging Market Debt A (IHIAX) invests the majority of its assets in debt securities issued from emerging markets. The fund may invest in securities denominated in dollars or foreign currencies, without regard to their maturity periods. The fund has a three year annualized return of 13.04%.

The Fund Manager is Roberto Sanchez-Dahl and he has managed this Federated mutual fund since 2000.

Federated Municipal High Yield Advantage A (FMOAX) seeks high current income. The fund invests a large share of its assets in long term securities exempt from tax, as well as in medium or non-investment grade quality tax exempt securities. It is non-diversified and utilizes derivatives to manage risk or enhance returns. The fund has a three year annualized return of 8.13%.

As of June 2012, this Federated mutual fund held 336 issues, with 1.28% of its total assets invested in Wisconsin St Gen Fd Annual App Gen 5.75%.

Federated Prudent Bear A (BEARX) invests in short term liquid securities to hedge against its obligations related to outstanding short positions. It seeks to grow capital by taking long positions on equity securities which are attractively priced relative to their underlying value. The fund has a three year annualized return of -13.31%.

The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.74% compared to a category average of 1.95%.

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.

Read the analyst report on STIAX

Read the analyst report on FGFAX

Read the analyst report on IHIAX

Read the analyst report on FMOAX

Read the analyst report on BEARX



View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research



More From Zacks.com