Multisector bond funds offer downside protection because they hold U.S. government, junk, and foreign government bonds. Over time, the high current yields offered by junk bonds and foreign bonds likely will help to provide higher returns than those from Treasuries. At the same time, holding several types of bonds that move out of sync with each other may reduce risk–not long ago, for example, strength in U.S. Treasuries offset weakness in junk and foreign bonds. There are over 130 multisector bond mutual funds, according to Morningstar Inc., Chicago, and the average fund in this category has yielded 7%-8% in every year since 1982. The average yield was recently 7.5%, versus 5.4% from the average government bond fund.