For the average investor, high yield 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, significantly reducing portfolio risk. 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 top rated high yield bond mutual funds. Each has earned a Zacks #1 Rank (Strong 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.

Fidelity Capital & Income (FAGIX -MF report) 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. The Fidelity Capital & Income fund has returned of 4.8% in the year-to-date frame.

Mark Notkin is the fund manager and he has managed FAGIX since 2003.

Lord Abbett High Yield A (LHYAX - MF report) invests a lion’s share of its assets in below investment grade debt instruments including corporate debt and convertible securities. LHYAX may invest not more than 20% of its assets in non-dollar denominated foreign securities. LHYAX may also invest a maximum of one-fifth of its assets in municipal securities. The Lord Abbett High Yield A fund has returned of 4.5% in the year-to-date frame.

LHYAX has an expense ratio of 0.94% compared to a category average of 1.07%.

MFS High Income A (MHITX - MF report) seeks total return through the combination of high current income and capital growth. MHITX invests a large chunk of its assets in debt securities that are believed to have high income potential. These securities consist of corporate bonds, foreign government securities and floating rate loans. The MFS High Income A fund has returned of 3.2% in the year-to-date frame.

As of April 2015, MHITX held 407 issues, with 0.90% of its total assets invested in iShares iBoxx $ High Yield Corporate Bd.

Harbor High-Yield Bond Investor (HYFIX - MF report) 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 3.8% in the year-to-date frame.

HYFIX has an expense ratio of 1.01% compared to a category average of 1.07%.

Thrivent High Yield A (LBHYX - MF report) seeks to achieve a high level of current income. LBHYX invests debt securities that are rated below “BB” by Standard & Poor's Corporation or below “Ba” by Moody's Investor Services, Inc. These securities include notes, debentures and other debt obligations. LBHYX invests in these securities irrespective of their maturity durations and may also invest in non-US securities. The Thrivent High Yield A fund has returned of 3.4% in the year-to-date frame.

Paul J. Ocenasek is the fund manager and he has managed LBHYX since 1997.