For investors looking for a balance between risk and return, balanced funds would be a good choice. A well diversified portfolio that combines equity securities and debt instruments can ensure good returns for investors. During a market downturn when equities suffer losses, those losses can be erased or minimized by the fixed income generating debt instruments present in the portfolio. However, during favorable market conditions maximum gains can be witnessed through high equity returns as well as fixed income from debt instruments.
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.
Leuthold Asset Allocation Retail
State Farm Balanced
Mairs & Power Balanced
Pioneer Classic Balanced A
LAALX Leuthold Asset Allocation Retail ( LAALX) invests 30% to 70% of its assets in common stocks and other equity securities. 30% to 70% of its assets are utilized to purchase bonds and other debt instruments, except money market securities. A maximum of 20% of its assets are invested in money market securities. The balanced mutual fund returned 6.75% over the last one year period.
The balanced mutual fund has a minimum initial investment of $10,000 and an expense ratio of 1.34% compared to a category average of 0.93%.
State Farm Balanced (STFBX) seeks capital appreciation as well as current income. 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. This includes preferred stock and debt securities with longer maturity periods; rated investment grade. The balanced mutual fund returned 7.49% in the last one year period.
As of December 2012, this balanced mutual fund held 273 issues, with 3.93% of its total assets invested in Walt Disney Co.
Archer Balanced (ARCHX) seeks total return. The fund invests in a wide range of equity and fixed income securities. It aims to invest in 25% to 70% in equity securities and 25% to 30% in fixed income securities, cash and cash equivalents. The balanced mutual fund returned 7.17% in the last one year period.
The Fund Manager is John Rosebrough and he has managed this balanced mutual fund since 2010.
Mairs & Power Balanced (MAPOX) seeks both capital growth and current income. It invests in common stock, related convertible securities and also fixed-income instruments. The fund also purchases investment grade fixed-income instruments with relatively higher ratings. The balanced mutual fund returned 17.04% in the last one year period.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.79% compared to a category average of 0.98%.
Pioneer Classic Balanced A (AOBLX) seeks current income and capital growth. The fund invests between 35% to 65% in equity and debt securities. Not more than 25% of its may be utilized to purchase foreign equity and debt securities. This balanced mutual fund returned 10.45% over the last one year period.
The Fund Manager is Richard A. Schlanger and he has managed this balanced mutual fund since 2006.
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.
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