Balanced funds provide investors with the convenience of buying into a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility while providing higher returns than pure fixed income investments. Fund managers of such funds also enjoy the flexibility of varying the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity in order to maximize gains; whereas a downturn sees them turning to fixed income investments to stem losses.
Below we will share with you 5 best-rated balanced mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (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.
Prudential Growth Allocation A (JDAAX - Free Report) seeks long-term capital growth. JDAAX invests in underlying funds of the Prudential Investments fund family. JDAAX invests around 90% of its assets in funds that maintain a diversified portfolio of equity securities. JDAAX invests the rest of its assets in funds focusing on acquiring fixed-income securities. The Prudential Growth Allocation A fund is non-diversified and has a three-year annualized return of 14.8%.
As of May 2015, JDAAX held 20 issues with 14.87% of its assets invested in Prudential International Value A.
T. Rowe Price Personal Strategy Balanced (TRPBX - Free Report) invests between 50% and 70% of its assets in stocks and 20-40% of its assets in bonds. TRPBX also invests in money market securities. TRPBX seeks to achieve maximum total return through capital appreciation and income. The T. Rowe Price Personal Strategy Balanced fund has a three-year annualized return of 12.7%.
Charles M. Shriver is the fund manager and has managed TRPBX since 2011.
RidgeWorth Moderate Allocation Strategy A seeks capital growth over the long run and current income. In order to achieve its objective, SVMAX invests 40-60% of its assets in underlying funds that predominantly invests in equity securities. SVMAX also invests 30-60% of its assets in funds investing in fixed income securities. SVMAX invests the rest of its assets in cash and cash equivalents, which also include unaffiliated money market funds, the U.S. government affiliated securities and short-term paper. The RidgeWorth Moderate Allocation Strategy A fund has a three-year annualized return of 9.9%.
SVMAX has an expense ratio of 0.67% as compared to category average of 0.90%.
Thrivent Aggressive Allocation A (TAAAX - Free Report) invests between 75-100% of its assets in equities through underlying funds and 0-25% of its assets in debt instruments. TAAAX may also focus on credit default swap agreements and standardized derivatives contracts that are traded in exchanges throughout the globe. The Thrivent Aggressive Allocation A fund has a three-year annualized return of 15.9%.
As of March 2015, TAAAX held 596 issues with 19.56% of its assets invested in S&P 500 Index Future June15.
Transamerica Asset Allocation Intermediate Horizon seeks high return over the long run through income and capital growth. DVMSX primarily invests in underlying funds of Transamerica Partners. DVMSX invests around 49.8% in funds investing in bonds and allocates half of its assets in stock funds. The rest of DVMSX’s assets is expected to be invested in money-market fund. The Transamerica Asset Allocation Intermediate Horizon fund is non-diversified and has a three-year annualized return of 14.8%.
DVMSX has an expense ratio of 0.10% as compared to category average of 0.80%.
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. Pick the best mutual funds with the Zacks Rank.