Top 5 Zacks #1 Ranked Balanced Funds

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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. Fund managers of 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 sees them turning to fixed income investments to stem losses.

Below we will share with you 5 top rated balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its 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.

Fidelity Global Balanced (FGBLX) invests in both domestic and foreign debt and equity instruments. A minimum of 25% of its assets are utilized to acquire debt securities, preferred stock and other fixed-income senior securities. The balanced mutual fund has a five year annualized return of 4.17%.

Ruben Calderon is the fund manager and has managed this balanced mutual fund since 2006.

Pioneer Classic Balanced A (AOBLX) seeks current income and capital appreciation. The fund invests 35% to 65% of its assets in equity and debt securities. Not more than 25% of its assets are used to purchase foreign debt securities. Up to 5% of its assets may be invested in securities issued from emerging markets. The balanced mutual fund has a five year annualized return of 5.03%.

The balanced mutual fund has an expense ratio of 1.16% compared to a category average of 0.98%.

Franklin Balanced A (FBLAX) invests in a range of dividend generating stocks, convertible instruments and debt securities. Not more than 25% of its assets may be utilized to purchase debt securities. The balanced mutual fund has a five year annualized return of 5.59%.

Edward Perks is the fund manager and has managed this balanced mutual fund since 2006.

Lord Abbett Global Allocation A (LAGEX) seeks total return. The fund invests in a combination of fixed income instruments and equity securities issued by governments and firms of different nations. It invests in a minimum of three countries, including U.S. The fund may also invest in emerging market securities. The balanced mutual fund has a five year annualized return of 3.20%.

As of December 2012, this balanced mutual fund held 273 issues, with 3.93% of its total assets invested in Walt Disney Co.

Plumb Balanced (PLBBX) invests in a wide range of common stocks and fixed income instruments. Generally, a minimum of 50% and 25% of its assets are invested in common stocks and fixed income senior securities respectively. The balanced mutual fund has a five year annualized return of 2.41%.

The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.25% compared to a category average of 0.93%.

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.

Read the analyst report on FGBLX

Read the analyst report on AOBLX

Read the analyst report on FBLAX

Read the analyst report on LAGEX

Read the analyst report on PLBBX



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