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.
Villere Balanced (VILLX) seeks capital appreciation over the long term. The fund purchases domestic common stocks as well as fixed income securities of high quality. These common stocks must have been issued by companies with market capitalizations of $150 million or more. The balanced mutual fund has a three year annualized return of 20.58%.
The balanced mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.11% compared to a category average of 0.99%.
Virtus Balanced A (PHBLX) utilizes at least 65% of its assets to purchase domestic and foreign common stocks and fixed income securities. The fund invests in companies regardless of their size and purchases emerging market securities. The dollar weighted average maturity period of its portfolio varies between two to eight years. The balanced mutual fund has a three year annualized return of 11.06%.
The Fund Manager is Kaushik Saha and he has managed this balanced mutual fund since 2009.
American Century Balanced (TWBIX) seeks both capital growth and current income. Around 60% of the fund’s assets are utilized to purchase equity securities and the balance is used to acquire fixed income instruments. The balanced mutual fund has a three year annualized return of 11.88%.
As of March 2012, this balanced mutual fund held 660 issues, with 2.16% of its total assets invested in Apple, Inc.
Ivy Balanced A (IBNAX) invests in a diversified portfolio of equity, debt and short term instruments, the composition of which depends on current market conditions. The fund focuses on investing in large and mid-cap companies which pay regular dividends. A minimum of 25% of its assets is utilized to purchase fixed-income securities. The balanced mutual fund has a three year annualized return of 12.49%.
The balanced mutual fund has a minimum initial investment of $500 and an expense ratio of 1.23% compared to a category average of 0.94%.
MEMBERS Diversified Income A (MBLAX) seeks both income and capital growth. The fund purchases a wide range of securities such as common stocks, real estate securities, domestic and foreign bonds, foreign stocks and money market securities. The balanced mutual fund has a three year annualized return of 10.26%.
The Fund Manager is John H. Brown and he has managed this balanced mutual fund since 1998.
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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