Investors seeking both 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, then click here.
T. Rowe Price Personal Strategy Balanced (NASDAQ:TRPBX - News) seeks high total return with and equal emphasis on capital appreciation and current income. It invests in a diversified portfolio which usually consists of 60% equity, 30% bonds and 10% money market securities. The balanced mutual fund has a ten year annualized return of 6.3%.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.68% compared to a category average of 0.99%.
Weitz Balanced (NASDAQ:WBALX - News) invests 50% to 75% of its assets in common stocks, rights warrants and convertible preferred stock. The fund invests in equity securities regardless of the size of the issuer. The balanced mutual fund has a three year annualized return of 5.39%.
The fund manager is Bradley P. Hinton and he has managed this balanced mutual fund since 2003.
Federated MDT Balanced A (NASDAQ:QABGX - News) seeks long term growth of both income and capital. The fund holds a widely diversified portfolio of stocks, bonds, exchange traded funds, foreign securities and synthetic instruments. This balanced mutual fund returned 18.83% over the last one year period.
The balanced mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.21% compared to a category average of 0.99%.
Buffalo Balanced (NASDAQ:BUFBX - News) invests in a mix of domestic common and preferred stocks, convertible securities, and debt. The fund’s debt investments may be rated as well as unrated and may include securities rated below investment grade. It invests a minimum of 25% of its total assets in equity and at least 25% in debt at any given time. The balanced mutual fund has a five year annualized return of 6.08%.
As of March 2011, this balanced mutual fund held 61 issues, with 9.43% of its total assets invested in Fidelity Instl MM Fds Government.
Thrivent Balanced A (NASDAQ:AABFX - News) seeks to provide both long term capital appreciation and a steady income flow. Up to 35-75% of its stocks are invested in common stocks, 25-50% in fixed-income securities and up to 40% in money market instruments. This balanced mutual fund returned 21.98% over the last one year period.
The fund manager is Michael Landreville and he has managed this balanced mutual fund since 2005.
To view the Zacks Rank and past performance of all balanced mutual funds, then click here.
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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