Risk-averse investors looking to earn steady, regular income may want to consider long-term bond mutual funds. These mutual funds are meant to provide regular income while protecting invested capital. Although mutual funds in this category seek to pay dividends more frequently than individual bonds, they offer greater stability than those that focus primarily on equity securities. Long-term bond funds, with an average maturity between 10 and 30 years, generally offer safer options compared to short- and medium-term funds.
Below, we share with you three of the best long-term government bond funds, namely Hussman Strategic Total Return Fund HSTRX, Rydex Government Long Bond 1.2x Strategy Fund Investor Class RYGBX and Calvert Core Bond Fund Class A CLDAX. Everyone won a Zacks Mutual Fund Ranking #1 (Strong Buy) and is expected to outperform its peers going forward. Investors can click here to see the full list of funds.
Hussman Strategic Total Return Fund invests primarily in fixed income securities, such as US treasury bills, strips, US treasury bills and bills, inflation-protected treasury securities and investment grade corporate debt. HSTRX has returned 7.4% over the past three years.
HSTRX has an expense ratio of 0.78% compared to the category average of 1.29%.
Rydex Government Long Bond 1.2x Strategy Fund Investor Class seeks to provide investment results that correspond to 120% of the daily change in the price of long-term Treasury bonds for US government securities. RYGBX invests the majority of its net assets in fixed income securities issued by the US government. The fund has returned 2.5% over the past three years.
Michael P. Byrum has been one of RYGBX’s fund managers since 1999.
Calvert Core Bond Fund Class A invests the majority of its net assets in high quality US dollar denominated debt securities and a portion in lower quality high yield debt securities (junk bonds). CLDAX has returned 5.5% over the past three years.
CLDAX has 45.1% of its assets invested in Total Misc Bonds.
To view the Zacks ranking and past performance of all long-term government bond funds, investors can click here to see the full list of long-term government bond funds.
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