Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.
The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
Below, we share with you three top-ranked balanced mutual funds, namely Dodge & Cox Balanced Fund DODBX, Meeder Muirfield Retail FLMFX and Bridgeway Managed Volatility BRBPX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Dodge & Cox Balanced Fund seeks regular income, conservation of principal and an opportunity for long-term growth of principal and income. DODBX invests in a diversified portfolio of common stocks, preferred stocks and fixed-income securities.
Dodge & Cox Balanced Fund has three-year annualized returns of 7.4%. DODBX has an expense ratio of 0.52% compared with the category average of 0.84%.
Meeder Muirfield Retail seeks growth of capital. FLMFX invests its total assets in mutual funds. The mutual funds in which the fund invests are primarily growth funds investing in common stocks.
Meeder Muirfield Retail has three-year annualized returns of 6.4%. As of June 2023, FLMFX held 245 issues, with 5.1% of its assets invested in Microsoft Corp.
Bridgeway Managed Volatility invests in common stocks and options. BRBPX advisors also invest in equities, foreign securities and fixed-income securities.
Bridgeway Managed Volatility has three-year annualized returns of 4.8%. Richard P. Cancelmo has been one of the fund managers of BRBPX since 2001.
To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds.
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