Today we are featuring top-performing “Government” fixed income mutual funds, which primarily invest in US government and agency securities.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Government Fixed Income Funds.

3 Solid Picks

Putnam American Government Income A (PAGVX) was incepted in March 1985. The investment seeks an attractive level of income along with capital preservation.

The fund invests mainly in government bonds with the highest credit rating, AAA. The manager uses proprietary models to evaluate mortgage-backed bonds and to manage the fund’s interest rate risk.

Rob Bloemker has been lead manager at the fund since July 2002. He has 21 years of industry experience. The fund has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Sentinel Government Securities A (SEGSX) seeks high current income while seeking to control risk by investing mainly in US government bonds.

The fund chooses the types of US government securities it believes will provide the best return with the least risk at the time of investment. Its investment process incorporates active duration management, yield curve positioning and sector as well as security selection.

The fund may invest up to 20% of assets in high-quality money-market instruments not issued or guaranteed by the U.S. government. It has an expense ratio of 0.95%.

SEI Daily Income Intermediate-Duration Government A (TCPGX) seeks to preserve principal value and maintain a high degree of liquidity while providing current income.

Under normal market conditions, the fund invests in intermediate-duration US treasury obligations and other US Government securities. It may also invest in futures contracts, options, swaps and other similar instruments.

Unit holders have to make a minimum initial investment of $100,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. The fund distributes dividends monthly and capital gains, if any, annually.

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Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.


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