The current economic turbulence across the globe has resulted in an increase in volatility across all asset classes. The equity markets are witnessing massive sell offs because of the risk averse climate among investors whereas the fixed income securities sport extremely low yields with sky rocketing prices. Moreover commodity prices have also corrected massively due to the reduced industrial consumption especially by the export oriented nations and have the room for further correction. Thus investing has become a cumbersome process, especially for retail investors. At a time like this, balanced funds can go a long way in providing a steady returns in the form of dividends and substantial capital appreciation when the markets head north.
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.
MEMBERS Diversified Income A (MBLAX) seeks both income and capital growth. The fund purchases a wide range of securities such as common stocks, real estate securities, domestic and foreign bonds, foreign stocks and money market securities. The balanced mutual fund has a three year annualized return of 11.06%.
The Fund Manager is John H. Brown and he has managed this balanced mutual fund since 1998.
Ivy Balanced A (IBNAX) invests in a diversified portfolio of equity, debt and short term instruments, the composition of which depends on current market conditions. The fund focuses on investing in large and mid-cap companies which pay regular dividends. A minimum of 25% of its assets is utilized to purchase fixed-income securities. The balanced mutual fund has a three year annualized return of 13.08%.
The balanced mutual fund has a minimum initial investment of $500 and an expense ratio of 1.23% compared to a category average of 0.99%.
Villere Balanced (VILLX) seeks capital appreciation over the long term. The fund purchases domestic common stocks as well as fixed income securities of high quality. These common stocks must have been issued by companies with market capitalizations of $150 million or more. The balanced mutual fund has a three year annualized return of 19.94%.
As of June 2012, this balanced mutual fund held 58 issues, with 11.52% of its total assets invested in Invesco Short Term inv Treasury Instl.
Virtus Balanced A (PHBLX) utilizes at least 65% of its assets to purchase domestic and foreign common stocks and fixed income securities. The fund invests in companies regardless of their size and purchases emerging market securities. The dollar weighted average maturity period of its portfolio varies between two to eight years. The balanced mutual fund has a three year annualized return of 11.94%.
The Fund Manager is Kaushik Saha and he has managed this balanced mutual fund since 2009.
American Century Balanced (TWBIX) seeks both capital growth and current income. Around 60% of the fund’s assets are utilized to purchase equity securities and the balance is used to acquire fixed income instruments. The balanced mutual fund has a three year annualized return of 12.61%.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.90% compared to a category average of 1.00% %.
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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