Tag Archives: mutual funds

3 Best-Rated Diversified Bond Mutual Funds To Keep An Eye On

Diversified bond mutual funds provide excellent opportunities to investors looking for steady returns with a relatively low level of risk. These funds provide exposure to a wide range of market sectors, thus reducing sector-specific risks. A relatively higher level of liquidity also makes diversified bond funds more attractive. Meanwhile, investing in diversified bond funds is preferred to investing in individual bonds, as building a portfolio of the second type may prove more expensive than the former. Below, we share with you three best-ranked diversified bond mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all diversified bond mutual funds, investors can click here . PIMCO Income Fund A (MUTF: PONAX ) seeks maximum current income. The fund invests a minimum of 65% of its assets in fixed-income securities from a wide range of sectors. These securities may include options, futures contracts and swap agreements. PONAX may invest not more than half of its assets in securities that are rated below investment grade. It has a three-year annualized return of almost 4%. As of December 2015, the fund held 4022 issues, with 7.76% of its total assets invested in Irs Usd 2.75000 06/17/15-10y Cme. Nuveen Preferred Securities Fund A (MUTF: NPSAX ) invests a major portion of its assets in preferred securities. The advisor invests a minimum 25% of its assets in the preferred securities of companies primarily involved in financial services. NPSAX invests a minimum of half of its assets in securities rated investment grade. It is a non-diversified fund and has a three-year annualized return of 4.3%. The fund has an expense ratio of 1.06%, as compared to the category average of 1.37%. PIMCO Fixed Income Shares C (MUTF: FXICX ) seeks to maximize total return with preservation of capital. It invests the majority of its assets in fixed-income securities, including corporate debt obligations, inflation-indexed securities of corporate bodies and structured notes. The fund allocates its assets throughout the globe. It has a three-year annualized return of 0.9%. Curtis A. Mewbourne has been the fund manager of FXICX since 2009. Original Post

3 Strong Buy Mid-Cap Growth Mutual Funds

Mid-cap funds are an ideal investment option for investors looking for high return potential that comes with lower risk than their small-cap counterparts. Mid-cap funds are not very susceptible to volatility in broader markets, making it an ideal bet given that the macroeconomic conditions have generally offered a roller-coaster ride in recent years. Meanwhile, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because they may experience relatively more fluctuations than other fund classes. Below we share with you three top-rated mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the funds to outperform their peers in the future. Columbia Mid Cap Growth A (MUTF: CBSAX ) seeks capital appreciation. CBSAX invests a major portion of its assets in companies that have market capitalizations in the range of the companies listed in the Russell Midcap Index. CBSAX invests in stocks that have the potential for long term, above-average earnings growth. The Columbia Mid Cap Growth A fund has a three-year annualized return of 9.5%. CBSAX has an expense ratio of 1.19% as compared to the category average of 1.28%. T. Rowe Price Mid-Cap Growth (MUTF: RPMGX ) maintains a diversified portfolio by investing a large chunk of its assets in companies having market capitalizations similar to those listed in the S&P MidCap 400 Index or the Russell Midcap Growth Index. RPMGX invests in companies having above-average growth potential. Though RPMGX focuses on acquiring common stocks of domestic companies, RPMGX may also invest in companies located outside the U.S. The T. Rowe Price Mid-Cap Growth fund has a three-year annualized return of 13.4%. Brian W.H. Berghuis is the fund manager of RPMGX since 1992. MFS Mid Cap Growth Fund A (MUTF: OTCAX ) seeks growth of capital. A large chunk of OTCAX’s assets is invested in issuers having medium market capitalization. These issuers have a market cap identical to the ones listed in the Russell Midcap Growth Index for the previous 13 months. The MFS Mid Cap Growth A fund has a three-year annualized return of 11.1%. As of February 2016, OTCAX held 103 issues with 2.59% of its assets invested in Ross Stores Inc. (NASDAQ: ROST ). Original Post

3 Mutual Funds To Buy As Consumer Spending Boost GDP

According to the “third estimate” of the U.S. Department of Commerce, the economy expanded at a rate of 1.4% in the fourth quarter of 2015 compared with the earlier estimate of a 1% rise. Moreover, the growth rate was above the consensus estimate of 1% gain. For the full year, GDP rose at an annual rate of 2.4%, in line with the 2014 growth rate. Thanks to consumer spending, which constitutes roughly 75% of the U.S. economy, GDP grew at a moderate pace in the fourth quarter despite weaknesses in the other major components of the economy. Steady growth in consumer spending is likely to have a positive impact on the retail sector, which attracts a major portion of consumer expenditure. Given this scenario, mutual funds having significant exposure to this sector may provide an excellent investment opportunity to seeking returns from this positive trend. Consumer Spending Boosting Economy According to the GDP report, personal consumption expenditure grew at a pace of 2.4% in the fourth quarter, preceded by a 3% rise in the third. In 2015, consumer spending rose 3.1% – the highest rate of increase since 2005. While spending on goods rose at a rate of 3.7% in 2015, the same on services increased 2.8% during the same time frame. Personal consumption expenditure contributed nearly 1.7% and 2.1% to GDP during the fourth quarter and last year, respectively. Consistent improvement in labor market conditions remained one of the key drivers of consumer spending. According to the latest data, the economy got a boost from 242,000 job additions in February, which exceeded January’s revised figure of 172,000 by a wide margin. Unemployment remained in line with January’s rate of 4.9%. Meanwhile, the GDP report showed that disposable personal income increased 2.3% in the fourth quarter, preceded by a 3.2% increase in the previous quarter. Also, it rose at a rate of 3.4% last year – the highest since 2006. The low inflation rate also gave a significant boost to consumer spending. According to the report, the personal consumption expenditure index (PCE) rose at a six-year low pace of 0.3% in 2015. Excluding food and energy prices, the index rose 1.3% – the lowest since 2011. Lingering Concerns A massive slump in business profits emerged as one of the main concerns in the fourth quarter. After-tax profits plunged 8.4% during the quarter, witnessing the largest decline since the first quarter of 2014. This was preceded by third quarter’s decline of 1.7%. After-tax profits slumped 5.1% last year, marking the biggest drop in the last seven years. Profits from current production plunged $159.6 billion last quarter, followed by a $33 billion decline in the third. Moreover, business investment declined 2.1% during the fourth quarter, in contrast to a 2.6% rise in the previous quarter. It subtracted nearly 0.3 percentage points from GDP figure. It is speculated that rising wages and an improving labor market will have a negative impact on the profit margin. Separately, exports declined 2.1% in the fourth quarter compared with a 0.7% rise in the third. Imports declined 0.7% in the last quarter. This is why net exports had a negative impact of more than 0.1% on the GDP number. Meanwhile, businesses witnessed a stock pile of $78.3 billion last quarter followed by $81.7 billion accumulated in the third quarter. This affected the GDP rate by more than 0.2 percentage points. 3 Mutual Funds to Buy Despite these concerns, the consumer-driven U.S. economy managed to register a moderate rate of growth on the back of positive factors including favorable labor market conditions, a low inflation rate and the low interest rate environment. The Fed recently reduced its forecast for the number of rate hikes this year from four to two. In this favorable environment, the retail sector is expected to benefit from steady growth in consumer spending as it attracts a major portion of the total spending. Against this backdrop, we highlight three retail focused mutual funds that carry either a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy). We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund. These funds have encouraging one-month and three-year annualized returns. The minimum initial investment is within $5000. Also, these funds have a low expense ratio. Fidelity Select Consumer Discretionary Portfolio (MUTF: FSCPX ) seeks growth of capital. This fund invests a large portion of its assets in securities of companies involved in the manufacture and distribution of consumer discretionary products and services. Currently, FSCPX carries a Zacks Mutual Fund Rank #1. The product has one-month and three-year annualized returns of 3.9% and 13.5%, respectively. Annual expense ratio of 0.79% is lower than the category average of 1.41%. Putnam Global Consumer A (MUTF: PGCOX ) invests a large portion of its assets in securities of companies involved in the manufacture and distribution of consumer discretionary products and services. Currently, PGCOX carries a Zacks Mutual Fund Rank #1. The product has one-month and three-year annualized returns of 5.4% and 10.7%, respectively. Annual expense ratio of 1.26% is lower than the category average of 1.43%. Fidelity Select Retailing (MUTF: FSRPX ) seeks capital growth. FSRPX invests a major portion of its assets in securities of firms involved in merchandising finished goods and services to consumers. Currently, FSRPX carries a Zacks Mutual Fund Rank #2. The product has one-month and three-year annualized returns of 3.8% and 20.3%, respectively. Annual expense ratio of 0.81% is lower than the category average of 1.41%. 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. Pick the best mutual funds with the help of Zacks Rank. Original Post