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.
ProFunds Rising Rates Opportunity (RRPSX) invests with the intention of getting returns on a daily basis which is 1.25 times the inverse of that of the daily returns of the 30-Year U.S. Treasury Bond. The government bond mutual returned 19.79 % over the last one year period.
The government bond mutual fund has an expense ratio of 2.62% compared to a category average of 1.92%.
Rydex Inverse Government Long Bond Strategy (RYJUX) seeks returns inversely proportional to the daily returns of the Long Treasury Bond for U.S. Treasury debt instruments. A major portion of assets is invested in derivatives. The government bond mutual fund returned 20.31% over the last one year period.
The Fund Manager is Michael P. Byrum and he has managed this government bond fund since 2000.
Driehaus Active Income (LCMAX) invests the majority of its assets in US floating rate and fixed income securities. Investments are also parked in investment graded and junk bonds. The government bond mutual returned 4.18% over the last one year period.
As of October 2013, this government bond mutual fund held 230 issues, with 2.51% of its total assets invested in FNMA CMO 1.5%.
Western Asset Mortgage Backed Securities A (SGVAX) seeks current income. A majority of assets are invested a large share of its assets in mortgage-backed securities issued by government backed institutions such as Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The government bond mutual fund returned 2.59% over the last one year period.
The government bond mutual fund has an expense ratio of 0.99% compared to a category average of 0.88%.
Homestead Short-Term Government (HOSGX) invests a majority of its assets in fixed-income securities that 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 -0.43% over the last one year period.
The Fund Manager is Douglas G. Kern and he has managed this government bond fund since 1995.
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.
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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.
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Read the analyst report on RRPSX
Read the analyst report on RYJUX
Read the analyst report on LCMAX
Read the analyst report on SGVAX
Read the analyst report on HOSGX
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