When seeking a secure investment that offers both capital growth and a steady income flow, balanced funds might be your best choice. By combining the benefits of both stocks and bonds, this kind of fund can ensure that gains from the stock market are accompanied with relatively low levels of volatility. Moreover, the best balanced funds keep their allocation between assets flexible and open to changes, depending on the current market situation. This enables them to reap the benefits of a bull run and protect assets during difficult times.
Below we will share with you 5 top rated balanced 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, then click here.
Thrivent Balanced Fund A (AABFX) seeks to provide both long term capital appreciation and a steady income flow. Up to 35-75% of its stocks are invested in common stocks, 25-50% in fixed-income securities and up to 40% in money market instruments. This balanced fund returned 33.46% over the last one year period.
Gregory R. Anderson is the fund manager and has managed this balanced fund since 2005.
Lord Abbett Balanced Strategy A (LABFX) invests in a combination of underlying funds which in turn invest in stocks, bonds and money market instruments. The securities held by these funds include common and preferred stocks, high-yield debt securities and money market instruments. The fund returned 34.92% in 2009 and has a ten year annualized return of 4.13%.
The balanced fund has a minimum initial investment of $1000 and an expense ratio of 1.10% compared to a category average of 1.02%.
UBS Dynamic Alpha A (BNAAX) seeks maximum total return by investing in securities providing exposure to global stocks, bonds and money market instruments. It is non-diversified and may also invest in open-ended investment companies advised by UBS. The fund returned 31.61% over the last one year period. As of December 2009, this balanced fund held 659 issues, with 37.23% of its total assets invested in UBS Relationship Funds.
Legg Mason Lifestyle Allocation 50% A (SBBAX) seeks both income and capital growth. It is non-diversified and invests in affiliated mutual funds. It invests its assets equally in equity and fixed-income funds. The fund has a ten year annualized return of 2.72%.
The fund manager is Steven D. Bleiberg and he has managed this balanced fund since 2006.
SAAT Market Growth Strategy A (SRWAX) invests in a mix of underlying SEI funds seeking long term capital appreciation. It invests heavily in equity funds and bonds, but may also consider real-estate, international equity and money market funds. The fund returned 31.69% over the last one year period.
The fund has an expense ratio of 1.47% compared to a category average of 1.02%.
To view the Zacks Rank and past performance of all balanced 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/
