Buy 3 Best-Rated Short Investment-Grade Bond Mutual Funds
Zacks Investment Research | Dec 07, 2016 09:21PM ET
Investment grade bonds are considered safer investments than those rated below investment grade, which are commonly known as high yield bonds or "junk" bonds. Investment-grade bonds are generally those debt securities that are rated 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) by bond rating firms, like Standard & Poor's.
Additionally, short-term bonds generally have maturity duration of five years and lower. Although, these debt securities are expected to provide less returns than the intermediate- and long-term ones, they have higher stability as shorter maturities are expected to reduce credit and interest rate risk. In this context, investing in short-term investment-grade mutual funds might be a wise choice for those seeking to derive safe returns.
Below we will share with you three top rated short-term investment-grade bond mutual funds. Each has earned a Zacks Investment Research
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