Top 5 High Yield Mutual Funds - Best of Funds
High yield securities are the preferred option for investors who have a reasonable appetite for risk and who are willing to forgo equity growth for current income. This category of securities comprises of corporate bonds of low quality, convertible securities and preferred stock, all of which carry a significant amount of risk. Mutual funds are a prudent method to invest in this class of funds as they significantly reduce the risk involved by holding a well diversified portfolio. Such funds may also seek capital appreciation as a secondary objective.
Below we will share with you 5 top rated high yield 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 high yield funds, then click here.
Federated High-Income Bond A (FHIIX) seeks current income. The fund invests heavily in a wide range of high-yield corporate bonds with lower ratings. The fund may also utilize synthetic instruments such as derivatives to fulfill its investment objectives. This high yield mutual fund returned 5.44% over the last one year period.
Mark E. Durbiano is the fund manager and he has managed this high yield mutual fund since 1987.
Vanguard High-Yield Corporate (VWEHX) invests the majority of its assets in corporate bonds assigned the lowest investment grade rating by a renowned bond rating agency. Up to 20% of its assets may be utilized to hold securities rated below investment grade. The high yield mutual fund has a three year annualized return of 19.17%.
As of September 2011, this high yield mutual fund held 353 issues, with 1.28% of its total assets invested in Cit Grp 7%.
Rydex High Yield Strategy A (RYHDX) seeks to mimic the performance of the high yield bond market. The fund invests in high yield debt securities. The fund may also invest in securities which as a whole mimic the performance of the U.S and Canadian high yield bond markets. This high yield mutual fund returned 5.17% over the last one year period.
High Risk Mutual Funds - News
Mutual funds are a prudent method to invest in this class of funds as they significantly reduce the risk involved by holding a well diversified portfolio. Such funds may also seek capital appreciation as a secondary objective. Federated High-Income
On top of all this, some funds also invest in high-risk strategies such as derivatives, which allow them to put up a little money to take on a much bigger bet. These aren't reported as leverage in a fund's regulatory filings, but they can act as
HIMCO is an important part of The Hartford and will focus its third-party asset management business on the institutional market, where it has a strong reputation for risk-managed performance," McGee said. The Hartford Mutual Funds was established in
The three funds expand Guggenheim's existing suite of fixed-income mutual funds, which includes the High Yield Bond Fund and the US Intermediate Bond Fund. Additionally, these funds now take advantage of the expanded capabilities of Guggenheim
Most investors could rely on a 60/40 portfolio of stocks/bonds or some variation, and used a few vehicles (primarily direct ownership of equity shares and mutual funds) to implement their strategies. Then about 30 years ago, several developments