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 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.
Fidelity Balanced (FBALX) seeks to provide both capital appreciation and income. Around 60% of the fund’s assets are utilized to purchase equity securities. The balance is invested in debt securities, including those of lower quality. The balanced mutual fund has a three year annualized return of 10.61%.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.60% compared to a category average of 1.00%.
AllianceBernstein Balanced Shares A (CABNX) invests in a wide range of equity and debt instruments. 60% to 75% of its assets are utilized to purchase stocks. Debt securities comprise 40% to 60% of its investments. The balanced mutual fund has a three year annualized return of 11.6%.
The Fund Manager is Michael DePalma and he has managed this balanced mutual fund since 2012.
Davis Appreciation & Income A (RPFCX) seeks both growth and income. The fund invests in common stock and preferred stock, bonds as well as cash. The fund focuses on investing in domestic firms, but may also invest in foreign companies. It selects common stock issued by growth oriented companies, regardless of their size. The balanced mutual fund has a three year annualized return of 6.42%.
As of June 2012, this balanced mutual fund held 50 issues, with 4.87% of its total assets invested in Tyson Foods Cv 3.25%.
Holland Balanced (HOLBX) invests in both equity securities and fixed income securities rated investment grade. The fund focuses on acquiring common stocks and domestic government securities and treasury inflation protected securities. A maximum of 25% of its assets are invested in money market instruments of high quality. The balanced mutual fund has a three year annualized return of 8.62%.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.50% compared to a category average of 1.00%.
MFS Diversified Income A (DIFAX) seeks current income, with a secondary objective of capital growth. The fund invests in a wide variety of equity and debt securities issued by domestic and foreign entities. It may purchase convertible and emerging market securities. The balanced mutual fund has a three year annualized return of 11.71%.
James T. Swanson is the fund manager and has managed this balanced mutual fund since 2006.
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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