By creating a diversified portfolio of both stocks and bonds, balanced funds ensure that they harness the inherent strengths of both classes of instruments. Most of the competently managed funds in this category keep the proportion of assets invested in different asset classes flexible and make adjustments in keeping with prevailing market conditions. This ensures that fixed-income securities protect the portfolio from losses during a downturn while equity securities harness maximum gains from a rising market..
Below we will share with you the 5 highest yielding Zacks #1 ranked balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their 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.
|JPMorgan Income Builder A||4.45%|
|Franklin Balanced A||3.01%|
|Hartford Balanced Income A||2.27%|
|Delaware Foundation Conservative Allocation A||1.79%|
|Putnam Dynamic Asset Allocation Conservative A||1.49%|
JPMorgan Income Builder A (JNBAX) seeks capital growth as well as a high level of income. The fund invests in a wide range of income generating securities. These include domestic equity and debt securities as well as those issued from foreign countries. It may invest all its assets in securities rated below investment grade. The balanced mutual fund returned 17.78% in the last one year period.
The Fund Manager is Patrik Jakobson and he has managed this balanced mutual fund since 2007.
Franklin Balanced A (FBLAX) invests in a wide range of dividend generating equity securities, bonds and related convertible securities. A minimum of 25% of its assets are utilized to purchase debt securities. Not less than 25% of its assets are invested in equity securities, especially common and preferred stock. The balanced mutual fund returned 7.91% in the last one year period.
As of June 2013, this balanced mutual fund held 168 issues, with 1.49% of its total assets invested in Schlumberger NV.
Hartford Balanced Income A (HBLAX) seeks current income. The fund aims to invest 45% of its assets in equity securities and 55% in fixed income instruments. A maximum of 20% of its assets are utilized to purchase domestic junk bonds. This balanced mutual fund returned 6.46% over the last one year period.
The balanced mutual fund has a minimum initial investment of $2,000 and an expense ratio of 0.83% compared to a category average of 0.93%.
Delaware Foundation Conservative Allocation A (DFIAX) invests about 40% of its assets in equity securities while 60% is invested in fixed income securities. Investments in foreign securities range between 5% to 50% of its assets. The balanced mutual fund returned 4.97% in the last one year period.
The Fund Manager is Francis Morris and he has managed this balanced mutual fund since 2004.
Putnam Dynamic Asset Allocation Conservative A (PACAX) seeks total return. The fund invests 15% to 45% of its assets in equity securities. 55% to 85% of its assets are invested in debt. The fund focusses on acquiring both domestic and foreign equity securities. The balanced mutual fund returned 5.88% over the last one year period.
The balanced mutual fund has an expense ratio of 1.07% 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.