Investing in bonds is a good option for those who don’t want to take too much risk and are okay with a fixed return. Such investors can further reduce their risk, as well as up their chances of getting a higher return by putting money in Multisector bond funds. Such funds diversify their holdings among several fixed-income sectors, such as government obligations, foreign bonds, corporate bonds and high-yield debt securities. If you also plan to invest in such securities, to help you select, detailed below are the ten top Multisector bond funds.
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Ten Top Multisector Bond Funds
We have referred to the past one year data (U.S. News) to rank the ten top Multisector bond funds. Following are the ten top Multisector bond funds:
APIUX invests directly in equity or debt securities. This fund has given a return of more than 3% in the past six months and over 2% in the past three years. APIUX has over $470 million in total assets and an expense ratio of 1.13. The top two holdings of the fund are The Hartford Financial Services Group, Inc. 2.28% and Enstar Group Ltd 4.95%.
FCFBX primarily invests in fixed income securities of U.S. and foreign corporate issuers, such as mortgage-backed securities, corporate bonds, and more. This fund has given a return of more than 3% in the past six months and over 5% in the past three years. FCFBX has over $176 million in total assets and an expense ratio of 1.11. The top two holdings of the fund are Sudbury Mill CLO Ltd. 4.88% and Race Point IX CLO, Limited/Corp 2.28%.
MBSAX primarily invests in fixed-income/debt markets. This fund has given a return of more than 2% in the past six months and has over $13 million in total assets. The top two holdings of the fund are Columbia Short-Term Cash and DT AUTO OWNER TRUST 2.74%.
NWXEX may invest in U.S. government securities and foreign government bonds. It may also invest in U.S. and foreign corporate bonds and debentures. This fund has given a return of more than 2% in the past six months and over 5% in the past three years. NWXEX has over $147 million in total assets and an expense ratio of 0.99. The top two holdings of the fund are Ultra 10 Year US Treasury Note Future Sept 21 and 5 Year Treasury Note Future Sept 21.
BDKAX primarily invests in asset-backed debt securities, and may also invest in illiquid securities. This fund has given a return of more than 2% in the past six months and over -7% in the past three years. BDKAX has over $670 million in total assets and an expense ratio of 1.78. The top two holdings of the fund are MS Liquidity Fds Euro Lqdy Instl Acc and Pnmac Gsmr Issuer Trust 2.76%.
TMLDX invests across many income and growth producing asset classes and strategies. This fund has given a return of more than 5% in the past six months and over 6% in the past three years. TMLDX has over $53 million in total assets and an expense ratio of 1.17. The top two holdings of the fund are Thrivent Core Emerging Markets Debt and SPDR® Blmbg Barclays High Yield Bd ETF.
ICMUX mainly invests in high-yield corporate debt securities, convertible debt, bank debt and U.S. government securities. This fund has given a return of more than 6% in the past six months and over 7% in the past three years. ICMUX has over $158 million in total assets and an expense ratio of 0.91. The top two holdings of the fund are CURALEAF T/L and Invesco Shrt-Trm Inv Treasury Instl.
IOFAX primarily invests in asset-backed fixed income securities, including securities backed by aircraft, equipment leases, credit card receivables, student loans and more. This fund has given a return of more than 6% in the past six months. IOFAX has over $3.9 billion in total assets and an expense ratio of 1.74. The top two holdings of the fund are iShares MBS ETF and Vanguard Mortgage-Backed Secs ETF.
SIFFX normally invests in securitized asset instruments. It may also invest in structured investments, such as custodial receipts, credit linked notes (CLNs), and adjustable rate mortgage loans (ARMs). This fund has given a return of more than 4% in the past six months. SIFFX has over $21 million in total assets and an expense ratio of 0.90. The top two holdings of the fund are VELOCITY COMMERCIAL CAPITAL LOAN TRUST 5.69% and Rmf Buyout Issuance Trust 2020-1 6%.
MDFIX normally invests in discounted portfolio funds that mainly invest in bonds. It also invests in loans, preferred securities, convertible securities and other instruments. This fund has given a return of more than 7% in the past six months. MDFIX has over $29 million in total assets and an expense ratio of 3.43. The top two holdings of the fund are Fidelity® Inv MM Fds Government I and Delaware MN Muni Income II.
