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5 Transamerica Mutual Funds Worth Considering

Posted on by L. Dreeye
5 Transamerica Mutual Funds Worth Considering

Transamerica, a well-known name in the investment world, offers five of the 224 mutual funds. which stand out for investors looking for diversified and reliable savings.

The five funds, which range in holdings from municipal bond funds to emerging market debt, offer a selection of different investment strategies suited to weather different economic conditions. In this article, we’ll outline the features of each fund and then describe how they can help you build a well-rounded retirement portfolio.

Key Findings

  • Transamerica is a San Francisco-based financial services firm founded in 1906.
  • Transamerica’s line of mutual funds includes a range of asset classes and investment styles.
  • Each of the five funds featured presents a distinct risk and return profile, ranging from relatively stable income generation to the higher risk and reward potential of growth funds.

1. Transamerica Intermediate Municipal Fund (TAMUX)

This bond fund provides tax-free income from municipal government bonds throughout the United States.

Morningstar gives this fund two stars; its expense ratio is 0.66%. Since its inception in 2012, the fund has consistently outperformed the Bloomberg Muni Managed Money Intermediate Index.

With different asset classes, geographic distributions and risk profiles, these funds collectively provide long-term investment strategies that balance risk with potential return.

2. Transamerica Sustainable Equity Fund (TDFAX)

This fund includes 35 to 50 large- and mid-cap companies. The fund seeks to provide multiple ways to generate income through a combination of dividend yield, dividend growth and capital appreciation.

The largest sectors represented are finance, industrials and information technology. Most holdings are domestic. As a long-term portion of a retirement portfolio, it should provide relatively stable income with moderate risk. However, the fund’s expense ratio is relatively high at 1.03% and has a Morningstar rating of just one star.

3. Transamerica Large Cap Fund (TWQAX)

At first glance, the Transamerica Large Cap Value Fund may look like a Sustainable Equity Income Fund with a small number of predominantly domestic stocks in the large-cap space, but the holdings are significantly different. This fund aims to generate income rather than dividends, making it an appropriate minority portion of a portfolio seeking overall capital preservation and growth.

The largest sectors represented are finance, healthcare and industrials. Almost all holdings are domestic. The expense ratio is 1.0%. Morningstar gives this fund three stars.

4. Transamerica High Yield Bond Fund (IHIYX)

This bond fund carries higher risk but provides higher returns compared to safer prospects. It has had some standout years (like 2016 with 14.13% growth), but it has also had some underperforming years. As of November 2024, its 10-year trailing yield was 3.78% and its year-to-date yield was 6.33%.

The fund has a two-star rating from Morningstar. This can help increase your portfolio’s overall return if you can tolerate future downturns. The expense ratio is 1.02%.

5. Trans-American Emerging Markets Debt Fund (EMTAX)

There is risk in investing even a small portion of your savings in emerging market debt, but the Transamerica Emerging Market Debt Fund has a global reach so its exposure to any one region is limited. The expense ratio is high at 1.25% and it has three stars from Morningstar.

What is Transamerica?

Founded in 1906, Transamerica began as a bank and later evolved into a financial services provider. Transamerica offers a wide range of financial products and services, including retirement products, insurance and investments. Since 1999, Transamerica has operated under the Aegon Group, a global financial services company that has strengthened its international presence.

Known for its iconic pyramid-shaped headquarters in San Francisco, Transamerica has an investment division known for its wide range of mutual funds.

How can I invest in Transamerica Mutual Funds?

Transamerica mutual funds are available for trading on all major brokerage platforms.

Does Transamerica offer no-load mutual funds?

Yes, Transamerica offers no-load mutual funds. No-load funds do not incur commissions when buying or selling. About three-quarters of its mutual funds are no-load funds, according to Transamerica.

Bottom line

Transamerica funds offer investors options for constructing a retirement portfolio to suit varying risk tolerances and investment goals. The dedicated funds – Transamerica Intermediate Muni Fund, Sustainable Equity Income Fund, Large Cap Value Fund, High Yield Bond Fund and Emerging Markets Debt Fund – provide a combination of stability, growth potential and income generation. It’s critical to understand the unique characteristics of each fund to see how they might fit into your investment strategy and whether they’re a good fit for your portfolio.