3 Diversified Bond Fund Picks to Balance Risk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 22 2025
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Source: NASDAQ.COM
Investment in Diversified Bond Funds: Mutual funds with diversified bond exposure are ideal for investors seeking steady returns and lower risk, as they reduce sector-specific risks and offer higher liquidity compared to individual bonds. Top-ranked funds include Nuveen Preferred Securities (NPSAX), Osterweis Strategic Income (OSTIX), and Ave Maria Bond (AVEFX), all rated #1 by Zacks.
Performance and Management of Selected Funds: NPSAX focuses on preferred securities, returning 7% over three years; OSTIX invests in income-bearing securities with a 9.1% return; and AVEFX targets investment-grade debt with a 5.5% return. Each fund has unique strategies and management approaches aimed at controlling risk and maximizing returns.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
