3 PIMCO Mutual Funds for Spectacular Returns

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PIMCO or Pacific Investment Management Company, LLC is a well-known global investment management firm. It offers a broad line-up of investment solutions that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments, and risk management.

Though the firm manages a large number of mutual funds across a wide spectrum, it is best known for fixed-income mutual funds. It boasts more than 2,800 employees across 12 countries and has trading operations in North America, Europe, and Asia. The company had around $2.21 trillion of assets under management as of Dec 31, 2020.

Below we share with you three top-ranked PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future.

PIMCO Fixed Income SHares: Series M (FXIMX - Free Report) fund aims for maximum total return along with the preservation of capital and prudent investment management. The fund invests the majority of its assets in a portfolio of domestic and foreign fixed income instruments of varying maturities that include mortgage- and other asset-backed securities, corporate debt securities, and floating and variable rate debt instruments. FXIMX sports a Zacks Mutual Fund Rank #1 and has returned 6.9% in the past three years.

As of the end of December 2020, FXIMX held 1,044 issues, with 16.32% of its assets invested in the Federal National Mortgage Association 2.5%.

PIMCO High Yield Fund Class A (PHDAX - Free Report) aims for maximum total return. The fund invests the majority of its assets in a diversified portfolio of high-yield investments such as junk bonds. It may also invest a minority of its assets in securities rated Caa or below by Moody's or rated likewise by the S&P or Fitch. If the security is unrated, PIMCO determines its quality. PHDAX carries a Zacks Mutual Fund Rank #2 and has returned 5.5% in the past three years.

PHDAX has an expense ratio of 0.92% compared with the category average of 1.00%.

PIMCO Diversified Income Fund Class C (PDICX - Free Report) seeks to maximize total return on investment, which is on par with preservation of capital. The fund invests the majority of its assets in a diverse portfolio of Fixed Income Instruments of varying maturities. It may also invest in investment-grade as well as high-yield securities. PDICX sports a Zacks Mutual Fund Rank #1 and has three-year annualized returns of 4.4%.

Eve Lagrellette Tournier is the fund manager of PDICX since 2016.