Today we are featuring top-performing "Diversified Bond" fixed-income mutual funds, which primarily invest in a variety of bonds that pursue total return as well as income.

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

3 Solid Choices

PIMCO Fundamental Advantage Total Return A (PTFAX) was founded in November 1999 and seeks total return consisting of current income and capital appreciation.

The fund primarily invests in debt obligations issued or guaranteed by the U.S. government and its agencies. It also invests in debt obligations issued by U.S. companies, foreign companies and foreign governments and their agencies.

William H Gross has been managing the fund since February 29, 2008. Gross is a designated Chartered Financial Analyst. He has also been recognized as an influential authority on the US bond market in a survey by Pensions and Investments Magazine conducted in 1993.

The fund

...

Delaware Trend A (DELTX) seeks long-term capital appreciation by primarily investing in small, growth-oriented or emerging companies.

The fund uses a bottom-up approach to create a portfolio and normally maintains its position in a stock until it fully achieves its growth potential. It analyzes price-to-earnings ratios, estimated growth rates, market capitalization and cash flows to determine the attractiveness of a company.

Medarex Inc. (MEDX), Sepracor Inc. (SEPR) and Abraxis BioScience Inc. (ABII) are among the fund’s key holdings.

Delaware International Value Equity A (DEGIX) was incepted in October 1991. The investment seeks long-term growth without undue risk to principal.

The fund invests primarily in equity securities of issuers from foreign countries but may invest more than 25% of assets in the securities of issuers located in the same country. As of May 31, its portfolio turnover was 44%.

Shareholders have to make

...