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 top 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.
Pioneer Flexible Opportunities A (PMARX - Free Report) seeks total return by investing across a wide range of asset classes. PMARX invests in both equity securities and fixed income producing securities. PMARX may also invest in other securities including commodity related securities, REITs and currencies. PMARX may allocate all of its assets in securities from foreign countries, including emerging countries. The Pioneer Flexible Opportunities A fund is non-diversified and has returned 7.5% in the year-to-date frame.
PMARX has an expense ratio of 1.18% as compared to category average of 1.40%.
Villere Balanced Investor (VILLX - Free Report) maintains a balanced portfolio by investing in both common stocks and fixed-income securities. VILLX allocates between 50% and 80% in equity securities of companies having market capitalizations above $150 million and above-average growth potential. Around 20%-50% of VILLX’s assets is allocated to high-quality fixed income securities having an impressive income prospect. The Villere Balanced Investor has returned 2.3% in the year-to-date frame.
As of June 2015, VILLX held 69 issues with 5.43% of its assets invested in LKQ Corp.
Pioneer Solutions Growth A seeks capital appreciation over the long run and current income. GRAAX is a “fund of funds” that primarily invests in equity and fixed income securities by allocating its assets in underlying funds affiliated by Pioneer. GRAAX may also directly invest in securities and other derivatives. GRAAX may also allocate its assets in mutual funds and ETFs that are not affiliated by Pioneer.
Salvatore Buono is one of the fund managers and has managed GRAAX since 2014.
JHancock Lifestyle Aggressive A (JALAX - Free Report) invests around 90% of its assets in underlying funds which in turn focuses on acquiring equity securities. Rest of JALAX’s assets get invested in underlying funds that primarily invest in fixed income securities. JALAX invests in a wide range of underlying funds that allocates their assets in equity securities of companies of any size throughout the globe. The JHancock Lifestyle Aggressive A has returned 4.2% in the year-to-date frame.
PMARX has an expense ratio of 0.47% as compared to category average of 0.84%.
Oppenheimer Active Allocation A (OAAAX - Free Report) seeks total return. OAAAX is expected to invest 75-85% of its assets in underlying funds based on “static allocation” and 15-25% of its assets get invested to other funds and investments on the basis of “tactical allocation.” Out of the static portion, OAAAX allocates 70-90% in funds focusing on equity securities, 10-30% in funds investing in fixed income securities and a maximum of 10% in other funds that are expected to provide asset diversification. The Oppenheimer Active Allocation A has returned 3.6% in the year-to-date frame.
As of June 2015, VILLX held 3,667 issues with 1.16% of its assets invested in JPMorgan Chase & Co.
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.