Investors seeking capital appreciation and regular income would do well to invest in balanced funds. This category of funds ensure that gains from surging markets are accompanied by lower levels of risk since they harness the strengths of equity as well as fixed income securities. 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 these mutual funds to outperform its peers in the future. To view the Zacks Rank and past performance of all balanced funds, then click here.
Victory Balanced A (SBALX) seeks to provide current income and capital appreciation over the long term. Between 40 to 75% of the fund’s assets are utilized to purchase equity and convertible securities and at least 25% of its assets are invested in debt and preferred stock. The balanced mutual fund returned 7.91% over the last one year period.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.14% compared to a category average of 1.01%.
Pioneer Classic Balanced A (AOBLX) invests 35% to 60% of its assets in equity and debt securities. Not more than 25% of its assets are used to purchase foreign securities. Up to 5% of its assets may be invested in securities issued from emerging markets. The balanced mutual fund has a five year annualized return of 2.79%.
As of July 2010, this balanced mutual fund held 389 issues, with 2.45% of its total assets invested in Teva Pharmaceutical Industries, Ltd. ADR.
Legg Mason Lifestyle Allocation 50% A (SBBAX) seeks both current income and capital appreciation. The fund invests in mutual funds affiliated to Legg Mason. It invests equal shares of its funds in equity and fixed-income funds. The balanced mutual fund has a ten year annualized return of 2.68%.
The Fund Manager is Steven D. Bleiberg and he has managed this balanced mutual fund since 2003.
Natixis Income Diversified A (IIDPX) invests in equity and fixed-income securities which generate income. The fund seeks current income with capital growth as a secondary objective. It aims to holds a diversified portfolio of varied income generating securities. The balanced mutual fund has a three year annualized return of 3.43%.
The balanced mutual fund has an expense ratio of 1.21% compared to a category average of 0.87%.
Principal Strategic Asset Management Conservative Balanced A (SAIPX) seeks The fund utilizes 20 to 60% of its assets to invest in equity funds. The fund invests 40 to 80% of its assets in a mix of fixed-income funds and cash equivalents. This balanced mutual fund returned 12.79% in the last one year period.
Dirk R. Laschanzky is the fund manager and has managed this balanced mutual fund since 2009.
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/
