High-yield bond mutual funds are ideal for investors looking to invest in bonds below investment grade. These funds offer a diverse range of securities, reducing portfolio risk and providing better returns than higher-rated investments. Neuberger Berman Floating Rate Inc, Nuveen Credit Income, and T. Rowe Price Floating Rate Adv are top-ranked high-yield bond mutual funds expected to outperform peers in the future.

Neuberger Berman Floating Rate Inc fund invests in variable-rate senior secured loans below investment grade, with three-year annualized returns of 6.6%. Nuveen Credit Income fund focuses on domestic investment grade, high yield, and international fixed income sectors, with three-year annualized returns of 6.2% and an expense ratio of 0.79%. T. Rowe Price Floating Rate Adv fund invests in floating rate loans and debt securities, with three-year annualized returns of 6.8% and a significant net asset allocation in miscellaneous bonds.

For investors seeking high-yield bond funds, Zacks provides a list of top-performing mutual funds. With a history of outperforming the market, Zacks Rank #1 Strong Buys offer potential for early price pops. Access the full list and receive key mutual fund information through Zacks’ free Fund Newsletter for weekly updates and analysis.

Read more at Nasdaq: 3 High-Yield Bond Funds to Buy for Impressive Returns