| Investors looking for protection of capital as well | | | | annualized return of 8.23%. |
| as a steady income stream often choose bonds | | | | RiverSource Floating Rate A (RFRAX) seeks high |
| over stocks and mutual funds offer a convenient | | | | current income along with a secondary objective |
| and inexpensive route of investing in these | | | | of protection of capital. At least 80% of its |
| securities. Diversified bond funds further drive | | | | assets are invested in floating rate loans and may |
| down risk by investing across various sectors. | | | | also invest up to 25% of its assets in foreign |
| This approach ensures that any negative | | | | securities. The diversified bond fund returned |
| fluctuation in a sector only has a slight overall | | | | 42.43% over the last one year period. |
| effect on the fund � and its investors, since | | | | This diversified bond fund has a minimum initial |
| various sectors of the bond market react | | | | investment of $5,000 and an expense ratio of |
| differently to changes in the economy and | | | | 1.11% compared to a category average of 1.36%. |
| interest rates. | | | | Loomis Sayles Fixed Income (LSFIX) invests the |
| Below we will share with you 5 top rated | | | | majority of its assets in fixed-income securities of |
| diversified bond funds. Each has earned a Zacks | | | | varying maturities. Up to 35% of its assets are |
| #1 Rank (Strong Buy) as we expect the fund to | | | | used to purchase lower rated fixed-income |
| outperform its peers in the future. | | | | securities and a smaller share is invested in |
| Putnam Diversified Income A (PDINX) invests | | | | preferred stocks. The diversified bond fund |
| 15% to 65% of its assets in government | | | | returned 36% in 2009 has a ten year annualized |
| securities and domestic and foreign corporate | | | | return of 9.54%. |
| bonds. The diversified bond fund returned 58% in | | | | Daniel J. Fuss is the fund manager and has |
| 2009 and has a ten year annualized return of | | | | managed this diversified bond fund since 1995. |
| 5.57%. | | | | PIMCO Commodity Real Return Strategy A |
| The Fund Manager is D. William Kohli and he has | | | | (PCRAX) seeks real return by investing in |
| managed this diversified bond fund since 1994. | | | | commodity-linked derivative instruments backed |
| Franklin Templeton Emerging Market Debt | | | | by a portfolio of inflation-indexed securities and |
| Opportunities (FEMDX) seeks high total return by | | | | other fixed-income instruments. The fund may |
| investing the greater part of its assets in bonds | | | | also use up to 10% of its assets to purchase |
| issued by emerging market countries. A large | | | | preferred stocks. The diversified bond fund |
| portion of its assets may be used to purchase | | | | returned 39.52% over the last one year period. |
| debt securities rated below investment grade and | | | | As of June 2009, this diversified bond fund held |
| a smaller share is invested in defaulted debt | | | | 581 issues, with 13.41% of its total assets |
| securities. It is a no load fund. | | | | invested in Pimco Cayman Commodity Fund Ltd. |
| This diversified bond fund has a three year | | | | |