By creating a diversified portfolio of both stocks and bonds, balanced funds ensure that they harness the inherent strengths of both classes of instruments. Most of the competently managed funds in this category keep the proportion of assets invested in different asset classes flexible and make adjustments in keeping with prevailing market conditions. This ensures that fixed-income securities protect the portfolio from losses during a downturn while equity securities harness maximum gains from a rising market.
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.
Timothy Plan Defensive Strategies A (TPDAX) invests differing proportions of its assets in REITs, ETFs, Treasury Inflation Protection Securities and cash and cash equivalents. The fund does not take fixed positions in any particular asset class. This balanced mutual fund is non-diversified and returned -5.19% over the last one year period.
The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.33% compared to a category average of 0.93%.
Delaware Foundation Conservative Allocation A (DFIAX) seeks capital appreciation along with current income and capital protection. About 40% of its assets are invested in equity securities while 60% is invested in fixed income securities. Investment in foreign securities ranges between 5% to 50% of its assets. The balanced mutual fund returned 7.15% in the last one year period.
Francis Morris is the fund manager and has managed this balanced mutual fund since 2004.
AllianceBernstein Real Asset Strategy A (AMTAX) invests its assets in inflation-protected fixed income securities. It invests in foreign securities which are linked directly to other assets and currencies. The fund invests in TIPS, equity securities and derivatives. This non-diversified balanced mutual fund returned -1.46% over the last one year period.
The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.05% compared to a category average of 1.19%.
Franklin Balanced A (FBLAX) seeks both capital growth and income. The fund invests in dividend yielding stocks, debt securities and convertible instruments. A minimum of 25% of its assets are invested in debt securities. It aims to invest a maximum of 15% of its assets in foreign securities. The balanced mutual fund returned 11.60% over the last one year period.
As of June 2013, this balanced mutual fund held 168 issues, with 1.49% of its total assets invested in Schlumberger NV.
JPMorgan Income Builder A (JNBAX) invests in both domestic and foreign debt and equity securities. The fund may invest nearly all its assets in junk bonds and equity securities rated below investment grade. A maximum of 60% of its assets may be invested in equity securities. The balanced mutual fund returned 11.26% over the last one year period.
Jeffrey Geller is the fund manager and has managed this balanced mutual fund since 2007.
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.
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