For the average investor, high yield bond mutual funds are the best method to invest in bonds rated below investment grade, popularly known as junk bonds. This is because these funds hold a wide range of such securities, which reduces the risk of the portfolio. In addition, these funds provide better returns than investments with higher ratings, including government and corporate bonds. Further, because the yield from such bonds is higher than investment grade securities, these investments are less susceptible to interest rate fluctuations.

Below we will share with you 5 buy-rated high yield bond mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all high yield bond funds, investors can click here to see the complete list of funds.

Buffalo High-Yield (BUFHX) allocates a majority of its assets in "junk bonds." Though BUFHX focuses on acquiring bonds having intermediate-term maturities, it can also consider bonds having maturities other than intermediate-term. BUFHX may also invest in other securities including investment grade bonds, dividend paying stocks and U.S. Treasury instruments. Buffalo High-Yield has year-to-date return of 4.2%.

BUFHX has an expense ratio of 1.02% compared to a category average of 1.07%.

Dreyfus High Yield I (DLHRX) seeks to maximize total return. DLHRX invests at least 80% of net assets in fixed-income securities that that are rated below investment grade ('high yield' or 'junk' bonds) or are the unrated equivalent as determined by Dreyfus. Dreyfus High Yield I has a year-to-date return of 1.4%.

As of June 2015, this high yield mutual fund held 289 issues, with 0.99% of its total assets invested in Scientific Games International.

Fidelity Capital & Income (FAGIX) seeks high level of income with capital appreciation. FAGIX primarily focuses on acquiring debt securities that are rated below investment grade. FAGIX also invests in equity securities of companies that are facing unfavorable financial condition throughout the globe. Factors such as industry position and economic condition are considered before investing in a security. Fidelity Capital & Income has year-to-date return of 3.1%.

Mark Notkin is the fund manager and has managed this high yield mutual fund since 2003.

Harbor High-Yield Bond Investor (HYFIX) invests a major portion of its assets in high yield corporate bonds that are rated below investment grade, commonly known as “junk bonds.” HYFIX may invest a maximum of 20% of its assets in bank loans and not more than 10% of its assets get invested in equity securities. HYFIX may also allocate a share of its assets in credit default swaps. The Harbor High-Yield Bond Investor fund has returned of 1.4% in the year-to-date frame.

As of June 2015, this high yield mutual fund held 317 issues, with 1.03% of its total assets invested in Reynolds Grp Issuer 5.75%

Fidelity Advisor High Income I (FHNIX) invests its assets in income producing debt securities, preferred stocks, and convertible securities while prioritizing lower quality debt securities. FHNIX also invests its assets in non-income producing securities and in securities of foreign and domestic issuers. Fidelity Advisor High Income I has returned of 2.6% in the year-to-date frame.

The high yield mutual fund has an expense ratio of 0.87% compared to a category average of 1.07%.