We looked at funds that were above-average performers over at least the past 5 to 10 years. Any money a fund spends is deducted from your capital and earnings. The less a fund spends, the better. The Vanguard Total Bond Market Index, for example, has a .20 percent ratio, meaning you'll only spend 20 cents for every hundred dollars invested on management fees each year. We excluded funds that charge sales commission fees.
Many experts recommend avoiding funds that charge for sales expenses, known as a load.
This eliminated many funds, including most institutional funds. Top Bond Funds Experts like the analysts at Morningstar say that intermediate-term bond funds are the best choice if you're only looking for one fund as a core portfolio holding. The Vanguard Total Bond Market Index is the experts pick for the best fund in this class. But two other intermediate-term bond funds also garner excellent reviews. Fremont Bond has one of the highest 5-year returns rates in the category over 8.5 percent but it is a bit more volatile than other funds.