High yield bonds are an excellent choice for investors who choose income over capital growth and have a reasonable appetite for risk. These securities are usually corporate bonds with low credit ratings, providing higher returns. Mutual funds are the best option for those looking to invest in these instruments since they hold a well-diversified basket of these securities. This reduces the risk involved significantly. Some of these funds may also look at capital appreciation as a secondary objective and help in diversifying investment portfolios. Below we will share with you 5 top rated high yield funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all high yield funds, then click here. American Funds American High Income Trust A ( AHITX) invests the majority of its assets in high-yield debt securities. These are primarily securities given lower ratings by a renowned rating firm. They may also be unrated securities which are believed to be of similar quality. This high yield fund returned 49.97% over the last one year period. The high yield fund has a minimum initial investment of $250 and an expense ratio of 0.79% compared to a category average of 1.21%. Fidelity High Income ( SPHIX) seeks high levels of current income, but may also look to generate capital gains. It focuses on debt securities of comparatively low quality and may also invest in preferred stocks and convertible securities. It is a no-load fund. The fund returned 48.1% in the last one year period and has a three year annualized return of 5.48%. Legg Mason Western Asset High Yield Bond A ( SAHYX) invests at least 80% of its assets in high yield bonds and related securities. Up to 35% of its assets may also be utilized to purchase sovereign debt issued by governments from emerging markets and their agencies. The fund has a five year annualized return of 4.07%. The fund has an expense ratio of 1.19% compared to a category average of 1.21%. Transamerica Partners High Yield Bond ( DVHYX) seeks high current income. It invests in preferred stocks and high yield debt securities. The majority of its assets are used to purchase junk bonds and related securities. The high yield fund has a ten year annualized return of 6.52%. Linda Carter is the fund manager and she has managed this high yield fund since 2000. Rydex/SGI High Yield A ( SIHAX) invests the majority of its assets in a wide range of high-yield debt securities. These securities are generally rated below the top four investment grades by a renowned ratings firm. Up to 10% of the securities purchased by the fund may be in default at the time of purchase. The fund has a five year annualized return of 6.52%. As of January 2010, this high yield fund held 184 issues, with 2.35% of its total assets invested in Engy Xxi Gulf Coast 10%. To view the Zacks Rank and past performance of all high yield 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/mutualfund/ Zacks Investment Research