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.
Hartford Balanced Fund Class A (ITTAX) primarily invests about 50-70% of its assets in equity securities. The remainder is utilized to purchase cash instruments and debt securities. The fund invests in companies without regard to their size. However, it focusses on investing in companies with market capitalizations similar to those which are part of the S&P 500. This balanced mutual fund returned 19.26% over the last one year period.
The balanced mutual fund has an expense ratio of 1.18% compared to a category average of 0.98%.
Intrepid Capital (ICMBX) seeks capital growth on a long-term basis along with high income. This non-diversified fund mostly invests in undervalued small and mid-cap equity and high yield securities with a maturity period ranging between two and six years. This balanced mutual fund returned 14.09% over the last one year period.
Mark I. Travis is the fund manager and has managed this balanced mutual fund since 2005.
Franklin Balanced A (FBLAX) invests in dividend yielding stocks, debt securities and convertible instruments. A minimum of 25% of its assets are invested in debt securities. It aims to invest a maximum of 15% of its assets in foreign securities. This balanced mutual fund returned 12.42% over the last one year period.
The balanced mutual fund has an expense ratio of 1.01% compared to a category average of 0.98%.
MainStay Moderate Growth Allocation A (MGDAX) seeks capital appreciation over the long term. The fund aims to meet its objective by investing in mutual funds that are managed by MainStay. The fund invests heavily in underlying equity securities. Around 20% of its assets may be invested in funds that are constituted by fixed income instruments. The balanced mutual fund returned 26.41% over the last one year period.
As of October 2013, this balanced mutual fund held 23 issues, with 13.28% of its total assets invested in MainStay US Small Cap I.
Principal Global Diversified Income A (PGBAX) invests a large share of its assets in high yield bond securities, preferred securities, asset backed securities and those issued from emerging markets. The fund also purchases global real estate and infrastructure equity securities. The balanced mutual fund returned 5.44% over the last one year period.
Dave Reichart is the fund manager and 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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