Discover the Top 5 Transamerica Funds for a Secure Retirement
Retirees seeking dependable income during their golden years are faced with a challenging financial landscape. The traditional go-to options like money market funds and certificates of deposit (CDs) no longer offer sufficient returns due to historically low interest rates. To combat the increasing costs of living and ensure a financially secure retirement, savvy investors are turning to diversification. Transamerica, a well-known financial services company, offers a diverse lineup of 228 funds as of 2022. In this article, we will explore the top five Transamerica funds that can help you build a well-diversified nest egg to support you throughout retirement.
1. Transamerica Intermediate Muni Fund (TAMUX)
Providing Tax-Free Income with Municipal Bonds
Transamerica Intermediate Muni Fund (TAMUX) is a bond fund that offers tax-free income by investing in municipal government bonds across the United States. With an average maturity of 12.24 years and an average duration of 8.40 years, this fund aims to strike a balance between yield and risk. The credit quality of its holdings is predominantly AA (60.35%) followed by A (18.33%). While this fund has received a two-star rating from Morningstar, investors should take note of its 0.63% expense ratio, which is relatively low.
Since its inception on October 31, 2012, TAMUX has consistently outperformed the Bloomberg Muni Managed Money Intermediate Index, making it an attractive choice for income-focused investors seeking stability in their portfolios.
2. Transamerica Sustainable Equity Income Fund (TDFAX)
Balancing Total Returns with Sustainable Investing
Transamerica Sustainable Equity Income Fund (TDFAX) takes a unique approach by maintaining a concentrated portfolio of 35 to 50 holdings in the large-cap space. The fund's primary goal is to provide total returns through a combination of dividend yield, dividend growth, and capital appreciation. With a focus on sectors such as financials, industrials, and information technology, it offers a mix of domestic and foreign holdings, providing diversification benefits.
However, it's important to note that TDFAX has a relatively high expense ratio of 1.02% and has received only a one-star rating from Morningstar. While it may not be the top performer in its category, it can serve as a stable, long-term component of a retirement portfolio.
3. Transamerica Large Cap Value Fund (TWQAX)
Value-Oriented Approach for Capital Preservation
Transamerica Large Cap Value Fund (TWQAX) might initially resemble the Sustainable Equity Income Fund, given its focus on a small number of predominantly domestic stocks in the large-cap space. However, the key difference lies in its investment strategy. TWQAX prioritizes value over dividends, making it a suitable choice for those looking to preserve and grow their capital over the long term.
The fund primarily invests in sectors such as financials, health care, and industrials, with a portfolio composed almost exclusively of domestic holdings. With an expense ratio of 0.98% and a two-star rating from Morningstar, TWQAX can be a valuable addition to a diversified retirement portfolio.
4. Transamerica High Yield Bond Fund (IHIYX)
Balancing Risk and Reward with High-Yield Bonds
Investors willing to accept a higher level of risk in pursuit of superior returns may find Transamerica High Yield Bond Fund (IHIYX) appealing. This bond fund has a track record of delivering impressive gains in certain years, such as the remarkable 56.42% return in 2009 and a 14.13% gain in 2016. However, it's essential to be prepared for potential setbacks, as evidenced by the -25.29% drop in 2008 and a -4.66% NAV loss in 2015.
IHIYX is a three-star-rated fund with a 30-day SEC yield of 6.47% and an average annual return of 7.07% since its inception on June 14, 1985. The majority of its holdings consist of high-yield junk bonds rated BB, BBB, or lower, with an average maturity of 7.30 years and an average duration of 4.23 years. The fund's expense ratio is 0.99%, making it an intriguing option for investors seeking to boost their overall income.
5. Transamerica Emerging Markets Debt Fund (EMTAX)
Diversifying with Emerging Market Debt
For investors looking to diversify their portfolio beyond domestic assets, Transamerica Emerging Markets Debt Fund (EMTAX) offers exposure to foreign governments' debt. While investing in emerging market debt carries certain risks, EMTAX mitigates some of these risks through its global scope, limiting exposure to any one region.
The fund allocates approximately 89% of its holdings to foreign governments, with top sovereign holdings in Mexico (13.93%), Indonesia (7.39%), Republic of South Africa (5.02%), and Brazil (4.42%). While it's important to note the higher risk associated with emerging markets, this fund can provide diversification benefits to a well-rounded retirement portfolio.
Transamerica offers a range of investment options to help retirees secure their financial future. These five funds, each with its unique characteristics and investment objectives, can play a pivotal role in creating a diversified retirement portfolio. While returns and ratings are essential factors to consider, it's crucial for investors to align their investment choices with their individual financial goals and risk tolerance. By carefully selecting from these Transamerica funds, retirees can work towards achieving a financially stable and prosperous retirement.
Tickeron's Offerings
The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search Engine, Real-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.