Top 5 Highest Yielding Balanced Mutual Funds

Balanced mutual funds could be an excellent choice for investors seeking both capital growth and steady income. Investing in this class of funds ensures that gains from rising markets are garnered only at lower levels of risk. 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 the 5 highest yielding Zacks #1 ranked balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all balanced funds, then click here.

Mutual Fund	Yield
Wells Fargo Advantage Growth Balanced	3.52%
Natixis Income Diversifed  A	3.1%
Buffalo Balanced	2.7%
American Century Balanced	1.71%
FBP Balanced	1.61%

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 returned 18.83% over the last one year period.

The Fund Manager is Jeffrey Mellas 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 9.79%.

The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.19% compared to a category average of 0.90%.

Buffalo Balanced (BUFBX) seeks capital growth over the long term with a secondary objective of current income. The fund invests in a mix of domestic common and preferred stocks, convertible securities, and debt. The fund’s debt investments may be rated as well as unrated. The balanced mutual fund has a five year annualized return of 5.12%.

As of June 2011, this balanced mutual fund held 66 issues, with 9.63% of its total assets invested in Fidelity Instl MM Fds Government I.

American Century Balanced (TWBIX) invests around 60% of its assets in equity securities and the balance in fixed-income securities. The bulk of the equity component of the fund’s portfolio is made up of large cap domestic companies. It also focuses on acquiring a wide range of high and medium grade fixed income securities. The balanced mutual fund has a ten year annualized return of 4.28%.

The Fund Manager is G. David MacEwen and he has managed this balanced mutual fund since 2005.

FBP Balanced (FBPBX) seeks to provide both long term capital appreciation and a steady income flow. The fund invests in both equity and fixed income instruments and aims to maintain a moderate level of risk. This balanced mutual fund returned 7.97% over the last one year period.

The balanced mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.00% compared to a category average of 1.03%.

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.

Read the full analyst report on NVGBX

Read the full analyst report on IIDPX

Read the full analyst report on BUFBX

Read the full analyst report on TWBIX

Read the full analyst report on FBPBX