Investors interested in deriving returns by gaining exposure to investment-grade bonds, also known as junk bonds, may consider high-yield bond mutual funds. These funds are expected to provide better returns than securities with higher ratings, including government and corporate bonds. Also, due to their higher yield feature, junk bonds are believed to be less susceptible to interest rate fluctuations.

Though bonds that are rated below investment grade are believed to be riskier than investment grade bonds, a well-diversified portfolio of these securities has a lower level of risks. Thus mutual funds maintaining a portfolio of these securities from a wide range of sectors are the best for investors.

Below we share with you four top-ranked high-yield bond mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all high-yield bond mutual funds, investors can click here to see the complete list of high-yield bond mutual funds.

Vanguard High-Yield Corporate Investor (VWEHX – MF report) invests primarily in a diversified group of high-yielding, higher-risk corporate bonds, with medium- and lower-range credit-quality ratings. VWEHX primarily invests in corporate bonds with rating lower than Baa by Moody’s or are unrated. Securities in VWEHX’s portfolio are expected to have maturity periods between short and intermediate durations. Vanguard High-Yield Corporate Investor has a three-month return of 2.3%.

Michael L. Hong is the fund manager of VWEHX since 2008.

Eaton Vance Income Fund of Boston A (EVIBX – MF report) seeks high current income. EVIBX invests a large chunk of its assets in high yield, high risk corporate bonds commonly referred to as “junk bonds,” which are rated lower than investment grade. Eaton Vance Income Fund of Boston A has a three-month return of 3.3%.

As of Jan 2016, EVIBX held 484 issues with 0.9% of its assets invested in Alphabet Hldg Co 7.75%.