Balanced mutual funds could be an excellent choice for investors seeking both capital growth and steady income. Investing in this class of funds ensures that gains from rising markets are garnered only at lower levels of risk since the strengths of both equity and fixed income securities are harnessed. 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, investors can click here to see the complete list of funds.
Principal SAM Balanced A (SABPX) invests in both fixed income and equity securities. The fund holds these securities by primarily investing in other funds from the Principal stable. The balanced mutual fund has a five year annualized return of 3.14%.
The Fund Manager is Todd R. Jablonski and he has managed this balanced mutual fund since 2009.
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 five year annualized return of 2.28%.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.10% compared to a category average of 0.92%.
Buffalo Flexible Income (BUFBX) invests in a wide spectrum of instruments like common stocks, convertible and non-convertible preferred stocks, convertible and non convertible debt securities, and junk bonds. The balanced mutual fund has a five year annualized return of 4.68%.
As of March 2012, this balanced mutual fund held 119 issues, with 9.64% of its total assets invested in Fidelity Instl MM Fds Government I.
WesMark Balanced (WMBLX) seeks capital growth and income. The fund invests in a portfolio consisting of equity, fixed-income securities and money market instruments. It focuses on allocating its equity component to common stocks of large and mid-cap companies and may invest in ETFs. The balanced mutual fund has a five year annualized return of 4.71%.
The Fund Manager is David B. Ellwood and he has managed this balanced mutual fund since 1998.
Ivy International Balanced A (IVBAX) invests in equity and debt securities which are issued from mature economies in Europe and the Asia-Pacific region. The fund invests in companies of all sizes and in government securities rated investment grade. It may also consider investing in emerging economies. The balanced mutual fund has a five year annualized return of 0.31%.
The balanced mutual fund has a minimum initial investment of $500 and an expense ratio of 1.44% compared to a category average of 1.22%.
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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