Investors seeking capital appreciation and regular income would do well to invest in balanced funds. This category of funds ensure that gains from surging markets are accompanied by lower levels of risk since they harness the strengths of equity as well as fixed income securities. The composition of their portfolios also ensures that capital invested is protected during difficult times. Moreover, many balanced funds keep the relative share of equity and debt flexible so that they can respond appropriately 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.
Eaton Vance Balanced A (EVIFX) seeks capital growth and current income. The fund invests in both fixed-income securities and common stocks through two other registered investment companies managed by Eaton Vance Management or its affiliates. The balanced mutual fund has a three year annualized return of 9.45%.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.14% compared to a category average of 1.00%.
Principal Strategic Asset Management Conservative Balanced A (SAIPX) utilizes 20 to 60% of its assets to invest in equity funds. The fund invests 40 to 80% of its assets in a mix of fixed-income funds and cash equivalents. The balanced mutual fund has a three year annualized return of 9.55%.
Todd R. Jablonski is the fund manager and has managed this balanced mutual fund since 2009.
Buffalo Flexible Income (BUFBX) seeks current income with a secondary objective of capital appreciation. The fund invests in equity as well as debt securities. The dollar weighted average maturity period of the fund is not expected to exceed 15 years. The balanced mutual fund has a three year annualized return of 13.71%.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.01% compared to a category average of 1.00%
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 11.63%.
As of June 2012, this balanced mutual fund held 176 issues, with 3.63% of its total assets invested in Apple, Inc.
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 18.31%.
George Young is the fund manager and has managed this balanced mutual fund since 1999.
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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