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 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.
Ivy International Balanced A
Buffalo Flexible Income
Oppenheimer Global Allocation A
State Farm Balanced
Hartford Balanced Income A
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 three year annualized return of 13.48%.
The Fund Manager is John C. Maxwell and he has managed this balanced mutual fund since 2009.
Buffalo Flexible Income (BUFBX) seeks capital appreciation over the long term as well as high current income. The fund 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 three year annualized return of 18%.
As of March 2012, this balanced mutual fund held 119 issues, with 9.64% of its total assets invested in Fidelity Instl MM Fds Government I.
Oppenheimer Global Allocation A (QVGIX) invests in equity and debt securities as well as other types of instruments, both domestic and foreign. The fund purchases stocks without limiting itself to a specific geographic zone. It invests in debt securities with different maturity periods. The balanced mutual fund has a three year annualized return of 13.71%.
The balanced mutual fund has an expense ratio of 1.35% compared to a category average of 1.22%.
State Farm Balanced (STFBX) seeks current income and growth of the principal amount invested. The fund invests 60% to 75% of its assets in common stocks. At least 25% of its assets are used to purchase fixed income securities. The balanced mutual fund has a three year annualized return of 10.82%.
The Fund Manager is Paul Eckley and he has managed this balanced mutual fund since 1991.
Hartford Balanced Income A (HBLAX) intends to invests 45% of its assets in equity and 55% in fixed income securities. The fund focuses on acquiring common stocks with a track record of regular dividends. A maximum of 20% of the fixed-income allocation may be utilized to purchase junk bonds. The balanced mutual fund has a three year annualized return of 17.59%.
The balanced mutual fund has an expense ratio of 0.67% compared to a category average of 0.92%.
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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