Balanced funds provide investors with the convenience of buying into a single fund rather holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility while providing higher returns than pure fixed income investments. Such funds also enjoy the flexibility of varying the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity in order to maximize gains; whereas a downturn may cause them to turn to fixed income investments to stem losses.
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.
ING Franklin Income Portfolio
Franklin Balanced A
Oppenheimer Global Allocation A
State Farm Balanced
USAA Growth and Tax Strategy
ING Franklin Income Portfolio (IIFAX) invests in a wide range of equity and debt securities. The fund purchases both dividend paying stocks as well as bonds issued from abroad, by companies or by the U.S. Treasury. It may invest all of its assets in junk bonds. The balanced mutual fund has a three year annualized return of 17.98%.
The balanced mutual fund has an expense ratio of 1.37% compared to a category average of 0.90%.
Franklin Balanced A (FBLAX) seeks income as well as capital growth The fund invests in a wide range of dividend yielding stocks, convertible and debt securities. A minimum of 25% of its assets are utilized to purchase debt securities. Among equity securities, it focuses on acquiring common and preferred stock. The balanced mutual fund has a three year annualized return of 21.84%.
As of March 2012, this balanced mutual fund held 156 issues, with 5.87% of its total assets invested in Ift Money Market Portfolio.
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 17.56%.
The Fund Manager is Colin Gorman Glinsman and he has managed this balanced mutual fund since 1992.
State Farm Balanced (STFBX) seeks current income and growth of the principal amount invested. The fund invests 60% to 75% of its assets in common stocks. At least 25% of its assets are used to purchase fixed income securities. The balanced mutual fund has a three year annualized return of 12.14%.
The balanced mutual fund has an expense ratio of 0.13% compared to a category average of 1.02%.
USAA Growth and Tax Strategy (USBLX) invests a large share of its assets in bonds which are exempt from federal income tax and money market securities. The balance of its assets is utilized to purchase blue chip stocks. The balanced mutual fund has a three year annualized return of 15.84%.
The Fund Manager is Michael A. Liao and he has managed this balanced mutual fund since 2009.
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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