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.
Putnam Capital Spectrum A (PVSAX - Free Report) invests a lion’s share of its assets in fixed income securities. It may invest in growth as well as value stocks of domestic firms irrespective of their market capitalization. The balanced mutual fund has returned 32.72% over the last one year period.
This non-diversified fund has an expense ratio of 1.27% as compared to category average of 1.19%.
JHancock Lifestyle Aggressive A (JALAX - Free Report) seeks capital appreciation over long run. It invests all its assets in underlying funds, which in turn invests 90% of assets in equities. It may invest in both domestic and foreign companies, and may also invest in sectors including utilities, science and technology. The balanced mutual fund has returned 20.33% over the last one year period.
Marcelle Daher is the fund manager and has managed this fund since 2013.
Principal Strategic Asset Management Strategic Growth A (SACAX - Free Report) invests 75% to 100% of its assets in underlying funds that invest in equity securities. It may invest less than half of its assets in a single equity fund. Its investments in specialty funds will not exceed 20% of its assets. The balanced mutual fund has returned 19.30% over the last one year period.
As of March 2014, the fund held 14 issues with 18.33% of its assets invested in Principal Equity Income Inst.
Prudential Growth Allocation A (JDAAX - Free Report) seeks capital growth over long run. It invests 90% of its assets in equity funds having diversified portfolio and 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 18.10% over the last one year period.
The fund has an expense ratio of 0.75% as compared to category average of 0.90%.
Lord Abbett Growth & Income Strategy A (LWSAX - Free Report) invests in mutual funds that are managed by Lord, Abbett & Co. LLC. The underlying funds invest in domestic equity securities and fixed income instruments and in foreign securities. They may also invest in both growth and value stocks to gain investment exposure. The balanced mutual fund returned 15.90% over the last one year period.
Robert I. Gerber is the fund manager and has managed this fund since 2005.
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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