Consider These 3 Diversified Bond Mutual Funds for Risk Protection

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Dec 04 2025

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Source: NASDAQ.COM

Investment Preference: Diversified bond funds are favored over individual bonds due to lower costs and higher liquidity, making them attractive for steady returns with reduced sector-specific risk.
Top-Ranked Funds: Three highly-rated diversified bond mutual funds include Nuveen Preferred Securities & Income Fund (NPSAX), T. Rowe Price Global Multi-sector Bond Fund (PRSNX), and Franklin Core Plus Bond Fund (FRSTX), all earning a Zacks Mutual Fund Rank #1.
Fund Performance: NPSAX has a three-year annualized return of 9.2%, PRSNX at 8%, and FRSTX at 7.1%, with each fund focusing on different types of securities to enhance income and capital growth.
Additional Resources: Investors can access a complete list of diversified bond mutual funds and receive updates through Zacks’ free Fund Newsletter, which includes top-performing mutual fund analysis.

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.