Top 5 Federated Mutual Funds - Best of Fund Family

Founded in 1955, Federated Investors is one of the largest investment managers in the U.S. With more than $358 billion worth of assets under management, the company has used a disciplined approach to deliver superior value to investors. Federated offers a wide range of products, including domestic and international equity, fixed-income and money market funds. These products are distributed through more than 5,200 financial intermediaries and institutions.

Below we will share with you 5 top rated Federated 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 Federated funds, then click here.

Federated International Bond A (FTIIX) invests heavily in foreign fixed income securities rated investment grade. These instruments may be issued by both governments and companies and are primarily non-dollar denominated. Not more than 10% of its assets may be utilized to purchase debt securities rated below investment grade. The fund has a five year annualized return of 7.16%.

The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 0.99% compared to a category average of 1.12%.

Federated Prudent Bear A (BEARX) seeks capital growth by short selling domestically traded equity securities. The fund holds more short positions than long positions, both on securities in its portfolio and the overall market. It also invests in exchange traded funds, synthetic instruments and restricted securities. The fund has a ten year annualized return of 3.42%.

As of June 2011, this Federated mutual fund held 135 issues, with 7.45% of its total assets invested in Federated US Treasury Cash Reserves I.

Federated Municipal High Yield Advantage A (FMOAX) invests primarily in tax-exempt securities. The fund may also invest in tax-exempt securities with maturity periods of less than 10 years. It may enter into derivative contracts and invest in securities which help it accrue short-term capital gains. The fund has a three year annualized return of 4.2%.

Lee Cunningham II is the fund manager and has managed this Federated mutual fund since 2009.

Federated Kaufmann Small Cap A (FKASX) seeks capital growth. The fund invests the majority of its assets in domestically traded common stocks of small firms. Not more than 30% of its assets may be utilized to purchase foreign securities. The fund returned 13.64% over the last one year period.

The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.95% compared to a category average of 1.52%.

Federated Market Opportunity A (FMAAX) invests heavily in domestic and foreign securities believed to undervalued by the fund advisor. It uses a contrarian investment management approach, purchasing in securities which are out of favor and deviating from the consensus view of the market. The fund has a ten year annualized return of 2.86%.

Dana Meissner is the fund manager and has managed this Federated mutual fund since 2009.

To view the Zacks Rank and past performance of all Federated mutual funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.