Balanced funds are a viable investment opportunity for all types of investors. Investing in this category of funds is just like investing in two separate equity and bond funds in a more cost effective way. Their asset allocation comprises of a synchronized blend of fixed income securities as well as equity and equity related instruments. While fixed income securities provide protection against downside risk as well as regular income, equities give uncapped upside opportunity for capital appreciation in an attractively valued market. These funds also provide diversification to investors while limiting exposure to a particular asset class.
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, investors can click here to see the complete list of funds.
Buffalo Balanced Fund (BUFBX) seeks capital appreciation and 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 bond. The balanced mutual fund returned 9.6% in the last one year period.
The balanced mutual fund has an expense ratio of 1.02% compared to a category average of 0.99%.
Members Balanced A (MBLAX) seeks high total income by investing up to 70% of its assets in stocks and up to 80% in bonds. Up to one fourth of its assets may be invested in real estate securities. The fund may also invest in ETF’s. The balanced mutual fund returned 7.84% in the last one year period.
The fund manager is John. H. Brown and he has managed this balanced mutual fund since 1998.
WesMark Balanced Fund (WMBLX) invests in a mix of equity, long term debt and money market instruments. The fund invests the majority of its assets in common stocks and long term debt. It may also invest in exchange traded funds. The balanced mutual fund returned 7.1% in the last one year period.
The balanced mutual fund an expense ratio of 1.32% compared to a category average of 0.99%.
Virtus Balanced Fund A (PHBLX) seeks income as well as capital growth. It seeks to maintain a debt to equity ratio of 2:3 for its portfolio. It invests in securities of domestic as well as foreign issuers, including those from emerging markets. The balanced mutual fund returned 4.89% in the last one year period.
As of December 2011, this balanced mutual fund held 253 issues, with 3.29% of its total assets invested in U.S Treasury Note 1.375%
Calvert Social Inv Balanced A (CSIFX) seeks to generate competitive total returns by investing in a variety of instruments. It invests predominantly in large cap stocks, bonds, money market instruments and mortgage backed securities issued by government sponsored enterprises. The balanced mutual fund returned 6% in the last one year period.
The Fund Manager is Matthew. A. Duch and he has managed this balanced mutual fund since September 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 at http://www.zacks.com/funds.
More From Zacks.com