Investors seeking capital appreciation over the long term as well as regular income would do well to select balanced funds. This category of funds ensure that profits from surging markets are accompanied by appreciably lower levels of risk since they can harness the strengths of equity as well as debt securities. The composition of their portfolios also ensures that the capital invested is protected during difficult market decisions. Additionally, the better funds in this category keep the allocation of assets between equity, debt and money market instruments flexible to enable them to respond effectively to current market conditions
Below we will share with you the 5 highest yielding Zacks #1 ranked balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all balanced funds, then click here.
| Mutual Fund | SEC Yield |
| Lord Abbett Diversified Income Strategy A | 8.93% |
| ING Global Total Payment A | 5.09% |
| UBS Dynamic Alpha A | 4.75% |
| J Hancock2 Lifestyle Moderate 5 | 4.06% |
| Legg Mason Lifestyle Allocation 50% A | 2.9% |
Lord Abbett Diversified Income Strategy A (ISFAX) invests in a weighted combination of funds that are managed by the fund’s advisor. A wide variety of equity, debt and money market instruments constitute the major holdings of the underlying funds. This balanced mutual fund has a three year annualized return of 5.07%.
Robert E. Gerber is the fund manager and has managed this balanced mutual fund since 2005.
ING Global Target Payment A (IGPAX) seeks to achieve the managed payment policy of the fund, with capital growth as a secondary objective. The fund invests through underlying funds, investing 65% of its assets in equity funds and 30% in bond funds. The balanced mutual fund returned 12.31% over the last one year period.
The balanced mutual fund has a minimum initial investment of $10,000 and an expense ratio of 0.49% compared to a category average of 1.19%.
UBS Dynamic Alpha A (BNAAX) invests in domestic and foreign equity and fixed-income securities. The fund seeks to gain exposure to global equity, fixed income and cash equivalents by investing in a range of financial instruments. The balanced mutual fund is non-diversified and returned 8.2% over the last one year period.
As of March 2010, this balanced mutual fund held 632 issues, with 58.22% of its total assets invested in Fed Fund 30DAY 28/05/10.
JHancock2 Lifestyle Moderate 5 (JHLMX) seeks current income and capital growth. Up to 40% of its assets are invested in underlying funds which in turn invest in equity securities. Around 60% of its assets are invested in underlying funds which hold fixed-income securities. The balanced mutual fund returned 14.96% over the last one year period.
The Fund Manager is Bruce Speca and he has managed this balanced mutual fund since 2010.
Legg Mason Lifestyle Allocation 50% A (SBBAX) invests the majority of its assets in mutual funds which are affiliated to Legg Mason. The fund allocates its assets equally between equity and fixed-income funds. This balanced mutual fund has a ten year annualized return of 2.68%.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.59% compared to a category average of 0.88%.
To view the Zacks Rank and past performance of all balanced mutual funds, then click here.
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/mutualfund/
