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If you'd rather not decide whether to load up on Treasuries or high-grade corporates, Ginnie Maes or foreign bonds, pristine-quality bonds or junk, then go for one fund that invests in all corners of the fixed-income market. T. Rowe Price Spectrum Income (symbol RPSIX) dips a finger into every part of the bond market by investing in a basket of other Price funds. It takes a relatively aggressive approach: At last report, the fund held 27% of its assets in junk bonds, 16% in foreign bonds and 15% in income-paying stocks. Still, Spectrum Income lost just 9% last year, besting the average multisector bond fund by six percentage points. The fund yields 5.9%.

Although untested, T. Rowe Price Strategic Income (PRSNX) looks promising. The fund, which launched in December, will invest largely in the same sectors as Spectrum. But manager Steve Huber will buy individual bonds rather than invest through other Price funds. "This fund will have the full menu of opportunities available to it," says Price fixed-income director Mary Miller.

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