Investors seeking total return, both regular income and long term capital appreciation, should include balanced funds in their portfolio. Balanced funds are perhaps the most flexible and actively managed category of mutual funds as their investments offer exposure across a variety of asset classes and sectors. Moreover, these funds not only seek to provide good returns during favorable market conditions, but also provide protection against substantial capital loss during difficult times.
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.
Federated Capital Income A
JPMorgan Income Builder A
Franklin Balanced A
Leuthold Core Investment Retail
American Funds Global Balanced A
Federated Capital Income A ( CAPAX) invests in fixed income and equity securities which the potential to provide high levels of income. Among equity securities, the fund selects prominent mid to large cap value stocks. It also purchases securities which provide high dividends which are expected to increase in the future. The balanced mutual fund returned 13.08% over the last one year period.
The balanced mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.02% compared to a category average of 0.91%.
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 15.48% in the last one year period.
As of March 2013, this balanced mutual fund held 1700 issues, with 0.75% of its total assets invested in Time Warner Inc.
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 11.98% in the last one year period.
The Fund Manager is Edward Perks and he has managed this balanced mutual fund since 2006.
Leuthold Core Investment Retail (LCORX) seeks both capital growth and current income. The fund invests in a portfolio consisting of equity securities, especially common stocks, bonds as well as money market securities. The balanced mutual fund returned 8.73% in the last one year period.
The balanced mutual fund has a minimum initial investment of $10,000 and an expense ratio of 1.14% compared to a category average of 0.93%.
American Funds Global Balanced A (GBLAX) invests in domestic and foreign equity securities which provide capital appreciation as well as income. A minimum of 45% of its assets are invested in common stocks and other equity securities. At least 25% of its assets are utilized to purchase bonds and money market securities. This balanced mutual fund returned 12.60% over the last one year period.
The Fund Manager is David M. Riley and he has managed this balanced mutual fund since 2011.
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.
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