3 Diversified Bond Mutual Funds to Buy for a Resilient Portfolio

Diversified bond funds provide investors with a convenient and affordable option to hold a portfolio of bonds from different economic sectors. The costs incurred to create a portfolio of individual bonds would be significantly higher than investing in this class of funds. The associated risk also declines since volatility in a specific sector has only a partial effect on the fund’s fortunes. The opportunity to reinvest the income generated and a relatively higher level of liquidity also make them secure and attractive investments.

Below, we share with you three top-ranked diversified bond mutual funds, viz., PIMCO CommoditiesPLUS and Bond Alp PCLAX, Nuveen Preferred Secs & Inc NPSAX and Allspring Diversified Income Builder Fund EKSAX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

PIMCO Commodities PLUS and Bond Alp fund seeks to achieve its investment objective by investing in commodity-linked derivative instruments backed by an actively managed, low-volatility portfolio of fixed-income instruments, and may also invest directly in commodities.

Fidelity High Income has three-year annualized returns of 13.7%. Greg E. Sharenow has been the fund manager of PCLAX since January 2015.

Nuveen Preferred Secs & Inc fund invests most of its assets, including any borrowings, in preferred and other income-producing securities.

Nuveen Preferred Secs & Inc has three-year annualized returns of 9.2%. As of the end of February 2026, NPSAX had 2.1% of its assets invested in UBS Group AG.

Allspring Diversified Income Builder Fund invests at least 80% of its total assets in a diversified portfolio of U.S. and non-U.S. income-producing securities of any quality, and may invest up to 60% of its total assets in equity securities from U.S. or foreign issuers, including emerging markets, of any size.

Allspring Diversified Income Builder Fund has three-year annualized returns of 12%. EKSAX has an expense ratio of 1.10%.

To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds.

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