3 Top-Rated Putnam Mutual Funds To Buy

Putnam Investments manages assets worth over $154 billion (as of September 30, 2016), of which $72 billion is allocated to more than 80 mutual funds including both equity and fixed income funds. The company operates in North America, Europe and Asia with offices in Boston, London, Frankfurt, Tokyo, Sydney and Singapore.

After the introduction of its first fund in 1937, Putnam Investments gradually evolved as one of the most renowned global financial investment companies. It provides a wide range of financial services including 50 institutional strategies. At present, the Boston-based company has more than 200 investment professionals.

Below we share with you three top-rated Putnam mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Putnam Investment funds.

Putnam Tax-Free High Yield A PTHAX seeks high current income free from federal income tax. The majority of the fund’s assets are invested in bonds, the interest from which is exempt from federal income tax. It purchases securities rated investment grade as well as those of lower quality. Putnam Tax-Free High Yield A has year-to-date, three-year and five-year annualized returns of 5.2%, 7.6% and 6.5%, respectively.

PTHAX has an expense ratio of 0.82% compared to the category average of 0.95%.

Putnam Small Cap Growth Y PSYGX invests mainly in common stocks of small U.S. companies, with a focus on growth stocks. PSYGX invests in companies of a size similar to those listed on the Russell 2000 Growth Index. Putnam Small Cap Growth Y has year-to-date, three-year and five-year annualized returns of 1.5%, 2.5% and 11.6%, respectively.

Pam Gao is the lead fund manager of PSYGX since 2010.

Putnam Convertible Income-Growth A PCONX seeks current income and capital conservation and appreciation. PCONX invests the bulk of its assets in convertible securities, a significant portion of which are rated below investment grade. It focuses on large and mid-cap companies and securities with maturity of three years or more. Putnam Convertible Income-Growth A has year-to-date, three-year and five-year annualized returns of 7.8%, 3.7% and 8.2%, respectively.

As of June 2016, PCONX held 114 issues with 3.06% of its assets invested in Allergan (NYSE:AGN_pa) Plc 05.5000 Cv Pfd.

To view the Zacks Rank and past performance of all Putnam Investment mutual funds, investors can click here to see the complete list of Putnam Investment funds.

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