3 Balanced Mutual Funds That Should Be on Your Radar
Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.
The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
Below, we share with you three top-ranked balanced mutual funds, namely AQR Managed Futures Strategy Fund AQMIX, Arrow Managed Futures Strategy Fund MFTFX and Schwab MarketTrack All Equity Portfolio SWEGX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
AQR Managed Futures Strategy Fund allocates most of its net assets in commodities, currencies, fixed-income and equities. AQMIX invests in instruments like futures, futures-related instruments, forwards, swaps and index futures.
AQR Managed Futures Strategy Fund has three-year annualized returns of 9.7%. AQMIX has an expense ratio of 1.25% compared with the category average of 1.68%.
Arrow Managed Futures Strategy Fund seeks to implement a fixed-income strategy and a managed-futures strategy. Using its fixed-income strategy, it invests part of its net assets in U.S. government securities, fixed-income securities, money-market instruments, overnight and fixed-term repurchase agreements, cash, and other cash equivalents with maturities of one year or less. MFTFX also invests a portion of its net assets in a wholly owned and controlled subsidiary to seek returns through its managed futures strategy.
Arrow Managed Futures Strategy Fund has three-year annualized returns of 11.8%. As of October 2022, MFTFX held 1 issue with 76.3% of its assets invested in TOTAL SHORT-TERM INVESTMENT.
Schwab MarketTrack All Equity Portfolio maintains a defined asset allocation in stock investments, with certain percentages for different segments of the stock market. SWEGX invests the majority of its net assets in stock investments. The fund has returned 4% over the past three years.
Schwab MarketTrack All Equity Portfolio has three-year annualized returns of 8%. Zifan Tang has been one of the fund managers of SWEGX since 2012.
To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds.
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