Investors seeking total return, both regular income and long
term capital appreciation, should include balanced funds in their
portfolio. Balanced funds are perhaps the most flexible and
actively managed category of mutual funds as their investments
offer exposure across a variety of asset classes and sectors. Such
funds often rebalance their portfolios on the basis of current
economic and market trends in order to meet their investment
objective. Moreover, these funds not only seek to provide good
returns during favorable market conditions, but also provide
protection against substantial capital loss during difficult
times.
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
.
Virtus Balanced A
(
PHBLX
) utilizes at least 65% of its assets to purchase domestic and
foreign common stocks and fixed income securities. The fund invests
in companies regardless of their size and purchases emerging market
securities. The balanced mutual fund has a five year annualized
return of 3.53%.
The balanced mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.15% compared to a category average
of 1.02%.
American Century Balanced
(
TWBIX
) seeks both capital growth and current income. Around 60% of the
fund's assets are utilized to purchase equity securities and the
balance is used to acquire fixed income instruments. The balanced
mutual fund has a five year annualized return of 4.12%.
As of March 2012, this balanced mutual fund held 660 issues,
with 2.16% of its total assets invested in Apple, Inc.
State Farm Balanced
(
STFBX
) invests 60% to 75% of its assets in common stocks. At least 25%
of its assets are used to purchase fixed income securities. This
includes preferred stock and debt securities with longer maturity
periods; rated investment grade. The balanced mutual fund has a
five year annualized return of 3.97%.
The Fund Manager is Paul Eckley and he has managed this balanced
mutual fund since 1991.
Wells Fargo Advantage Growth Balanced
(
NVGBX
) seeks both capital growth and current income. At present, the
fund's portfolio consists of the different equity and fixed income
of various master portfolios. As per the fund's "neutral" target
allocation 655 of its assets are invested in equities and 35% in
bonds. The balanced mutual fund has a five year annualized return
of 2.01%.
The balanced mutual fund has an expense ratio of 0.95% compared
to a category average of 1.02%.
Ivy Balanced A
(
IBNAX
) invests in a diversified portfolio of equity, debt and short term
instruments, the composition of which depends on current market
conditions. The fund focuses on investing in large and mid-cap
companies which pay regular dividends. The balanced mutual fund has
a five year annualized return of 6.23%.
The Fund Manager is Cynthia P. Prince-Fox and he has managed
this balanced mutual fund since 2003.
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.
View All Zacks #1 Ranked Mutual Funds
To read this article on Zacks.com click here.
Zacks Investment
Research