Markets

Zacks #1 Ranked Balanced Funds - Best of Funds

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.

Wells Fargo Advantage Diversified Capital Builder A (EKBAX) seeks capital growth and current income over long run. The fund invests 70% to 90% of its assets in equity and 10% to 30% in debt securities. The fund invests in equity securities of companies regardless of their market capitalization. A maximum of 30% of its assets is invested in junk bonds. It invests a maximum of 25% of its assets in non U.S. securities. The balanced mutual fund has returned 14.77% over the last one year period.

The fund has an expense ratio of 1.20% as compared to category average of 0.91%.

American Funds Global Balanced A (GBLAX) seeks capital appreciation with preservation of principal and current income. It invests in debt and equity securities, both domestic and foreign. The fund invests a minimum of 45% of its assets in common stock and other equity securities. A minimum of 25% of its assets are invested in debt securities. The balanced mutual fund has returned 13.86% over the last one year period.

As of March 2014, the fund held 494 issues with 2.90% of its assets invested in Novartis AG.

JHancock Lifestyle Aggressive A (JALAX) invests all its assets in underlying funds, which in turn invests 90% of assets in equities and remainder in fixed income funds. It may invest in both domestic and foreign companies irrespective of their market capitalization. The balanced mutual fund has returned 15.06% over the last one year period.

The fund has an expense ratio of 0.52% as compared to category average of 1.08%.

Prudential Growth Allocation A (JDAAX) seeks capital growth over long run. It invests 90% of its assets in equity funds having diversified portfolio. The rest of its assets are invested in fixed-income funds. This non-diversified fund may have diversified holdings as well. The balanced mutual fund has returned 13.21% over the last one year period.

Joel M. Kallman is the fund manager and has managed this fund since 2007.

Fidelity Advisor Balanced A (FABLX) invests around 60% of its assets in equity securities and the remaining assets in debt securities. A minimum of 25% of its assets is invested in fixed-income senior securities. The balanced mutual fund has returned 13.19% over the last one year period.

The fund has an expense ratio of 0.94% as compared to category average of 0.96%.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

View All Zacks #1 Ranked Mutual Funds

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (EKBAX): Fund Analysis Report

Get Your Free (GBLAX): Fund Analysis Report

Get Your Free (JALAX): Fund Analysis Report

Get Your Free (JDAAX): Fund Analysis Report

Get Your Free (FABLX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GBLAX FABLX EKBAX JALAX

Other Topics

Mutual Funds

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More