As of 2015, five-star bond funds as rated by Morningstar include Eaton Vance Floating-Rate Advantage, Delaware Extended Duration Bond, Fidelity Advisor Emerging Markets Income, Fidelity Advisor Emerging Markets Income and Fidelity Ginnie Mae Fund, according to About.com. Morningstar gives 5 stars to the top 10 percent of bond funds it rates. The minimum investment for those bond funds on the list is $500,000. Other five-star bond funds include AllianceBern High Income Advisor, DWS Massachusetts Tax-Free Fund and Putnam Diversified Income.Continue Reading
Morningstar breaks its list down into categories that pertain to the bond fund type, explains About.com. Among the categories are bank loan, corporate, emerging market, high yield and intermediate-term government bonds. Morningstar's rating of bond funds is a measure of past performance and does not guarantee similar future performance. This is why it is essential that investors do additional research and seek further advice rather than simply relying on the star ratings.
Morningstar awards fewer number of stars to bond funds whose past performance for a certain period does not meet the standard of the top 10 percent, adds About.com. It awards four stars to the next 22.5 percent of the bond funds after the top 10 percent, three stars to the following 35 percent, two stars to the next 22.5 percent and one star to the lowest 10 percent.Learn more about Investing