Investors looking at both long term capital growth and regular income would do well to consider balanced funds. Balanced funds ensure that gains from rising markets are accompanied by relatively lower levels of risk since they can utilize the strengths of equity as well as fixed income securities. The composition of their portfolios also ensures that the capital invested is protected during a market downturn. Moreover, many funds in this category keep the relative shares of equity, debt and money market instruments fluid to enable them to respond to changing market conditions.
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.
Buffalo Balanced Fund (BUFBX) invests in a wide spectrum of instruments like common stocks, convertible and non-convertible preferred stocks, convertible and non convertible debt securities, and junk bonds. The balanced mutual fund has a five year annualized return of 5.47%.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.02% compared to a category average of 1.00%.
Virtus Balanced A (PHBLX) seeks income and capital appreciation over the long term. The fund 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 balanced mutual fund has a five year annualized return of 3.44%.
As of February 2012, this balanced mutual fund held 268 issues, with 2.82% of its total assets invested in BlackRock Liquidity TempFund Instl.
WesMark Balanced (WMBLX) invests in a portfolio consisting of equity, fixed-income securities and money market instruments. It focuses on allocating its equity component to common stocks of large and mid-cap companies and may invest in ETFs. The balanced mutual fund has a five year annualized return of 5.16%.
The Fund Manager is David B. Ellwood and he has managed this balanced mutual fund since 1998.
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 five year annualized return of 4.06%.
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%.
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. It may also consider investing in emerging economies. The balanced mutual fund has a five year annualized return of 1.83%.
The Fund Manager is John C. Maxwell 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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