Today, we are featuring top-performing “Corporate High Yield" mutual funds, which primarily seek high current income through investment in lower-rated corporate bonds.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Corporate High Yield Funds list.

3 Excellent Picks

Rydex/SGI High Yield A (SIHAX) was incepted in August 1996. It seeks high current income with capital appreciation as a secondary objective.

The fund invests at least 80% of its assets in a broad range of high-yield, high risk debt securities rated in medium or lower rating categories. The debt securities in which the fund invests are primarily domestic securities. However, it may also invest in dollar denominated foreign securities.

The fund pays dividends monthly. Capital gains are distributed at least annually. As of June 2009, its portfolio turnover was 29%.

David G. Toussaint has been lead manager of the fund since April 2000. Toussaint is a Chartered

Today we are featuring top-performing "Corporate High Yield" fixed income mutual funds, which primarily seek high current income through investment in lower-rated corporate bonds.

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

3 Solid Samples

PIMCO Fundamental Advantage Total Return Institutional (PFATX) seeks long-term growth of capital. The fund invests at least 80% of its assets in equity securities and derivatives in the technology-related sector.

The fund invests at least 50% of its gross income or its net sales income from activities in the sector. The fund may invest its assets in foreign securities.

Unit holders have to make a minimum initial investment of $5,000,000 to enter this Zacks#1 Rank ("Strong Buy") fund. As of June 2009, its portfolio turnover was 621%.

William H. Gross has been lead manager of the fund since February 2008. Gross is a Chartered Financial