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 these mutual funds to outperform their 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.
American Beacon Balanced A (ABFAX - Free Report) invests 50% to 70% of its assets in equity securities and 30% to 50% in debt securities. Its equity investments include common stocks, preferred stocks, Real Estate Investment Trusts, American Depositary Receipts, and foreign stocks denominated in U.S. dollar and traded on U.S. exchanges. The balanced mutual fund has returned 9.1% over the last one year period.
As of November 2014, the fund held 535 issues with 5.33% of its assets invested in S+p500 Emini Fut Dec14 Xcme 20141219
Bruce Fund (BRUFX - Free Report) seeks long term-capital appreciation. The fund mostly invests in domestic common stocks, convertible bonds and “zero coupon” government bonds. The fund may invest in foreign securities directly or through American Depository Receipts or Global Depository Receipts. The balanced mutual fund has returned 13.5% over the last one year period.
The fund has an expense ratio of 0.7% as compared to category average of 0.94%.
Pioneer Classic Balanced A (AOBLX - Free Report) generally invests between 35% and 65% of its assets in both equity and debt securities. It invests in debt securities having broad range of maturities. It maintains an average portfolio maturity that may vary depending upon the investment advisor’s judgment. The balanced mutual fund has returned 10.9% over the last one year period.
As of November 2014, the fund held 457 issues with 2.4% of its assets invested in Microsoft Corp
Lord Abbett Multi-Asset Growth A (LWSAX - Free Report) seeks long-term capital growth and income. The fund 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. The underlying fund invests in both growth and value stocks. The balanced mutual fund returned 8% over the last one year period.
Robert I. Gerber is the portfolio manager and has managed this fund since 2005.
Eaton Vance Balanced A (EVIFX - Free Report) invests its assets in common stocks and fixed-income securities. It invests in two other registered investment companies managed by Eaton Vance Management. It invests 50%-75% of its assets in equity securities, and 25%-50% of its assets in fixed-income securities by investing in Stock Portfolio and Investment Grade Income Portfolio, respectively. The balanced mutual fund has returned 10.3% over the last one year period.
As of November 2014, the fund held 365 issues with 2.75% of its assets invested in US Treasury Note 4.625%
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 at www.zacks.com/funds/mutual-funds.