By creating a diversified portfolio of both stocks and bonds, balanced funds ensure that they harness the inherent strengths of both classes of instruments. Most of the competently managed funds in this category keep the proportion of assets invested in different asset classes flexible and make adjustments in keeping with prevailing market conditions. This ensures that fixed-income securities protect the portfolio from losses during a downturn while equity securities harness maximum gains from a rising market.
Below we will share with you the 5 highest yielding Zacks #1 ranked balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all balanced funds, investors can click here to see the complete list of funds.
Ivy International Balanced A
Buffalo Flexible Income
Oppenheimer Global Allocation A
MFS Global Total Return A
American Century Balanced
Ivy International Balanced A ( IVBAX) invests in equity and debt securities which are issued from mature economies in Europe and the Asia-Pacific region. The fund invests in companies of all sizes and in government securities rated investment grade. The balanced mutual fund has a three year annualized return of 21.15%.
The balanced mutual fund has a minimum initial investment of $500 and an expense ratio of 1.44% compared to a category average of 1. 22%.
Buffalo Flexible Income (BUFBX) seeks capital growth over the long term with a secondary objective of current income. The fund invests in a mix of domestic common and preferred stocks, convertible securities, and debt. The fund’s debt investments may be rated as well as unrated. The balanced mutual fund has a three year annualized return of 22.28%.
As of December 2011, this balanced mutual fund held 90 issues, with 9.31% of its total assets invested in Fidelity Instl MM Fds Government I.
Oppenheimer Global Allocation A (QVGIX) invests in equity and debt securities as well as other types of instruments, both domestic and foreign. The fund purchases stocks without limiting itself to a specific geographic zone. It invests in debt securities with different maturity periods. The balanced mutual fund has a three year annualized return of 19.65%.
The Fund Manager is Colin Gorman Glinsman and he has managed this balanced mutual fund since 1992.
MFS Global Total Return A (MFWTX) seeks total return. The fund purchases both equity and debt securities. It aims to invest 40% to 75% of its assets in equity. A minimum of 25% of its assets are utilized to purchase fixed-income senior securities. The balanced mutual fund has a three year annualized return of 15.92%.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.25% compared to a category average of 1.22%.
American Century Balanced (TWBIX) invests around 60% of its assets in equity securities and the balance in instruments generating fixed-income. For its equity component, the fund focuses on purchasing stocks of publicly traded domestic companies. The balanced mutual fund has a three year annualized return of 17.8%.
The Fund Manager is G. David MacEwen and he has managed this balanced mutual fund since 2005.
To view the Zacks Rank and past performance of all balanced mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
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