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3 Balanced Mutual Funds to Buy for Spectacular Returns

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Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.

The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.

Below, we share with you three top-ranked balanced mutual funds, viz. Direxion Monthly S&P 500 Bull 2X Fund Investor Class (DXSLX - Free Report) , MFS Aggressive Growth Allocation Fund (MIAGX - Free Report) , and AlphaSimplex Managed Futures Strategy Fund Class A (AMFAX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Direxion Monthly S&P 500 Bull 2X Fund Investor Class invests most of its assets along with borrowings, if any, in securities that provide monthly exposure to the index and exchange-traded funds "ETF"). DXSLX uses a float-adjusted and market capitalization-weighted index.

Direxion Monthly S&P 500 Bull 2X Fund Investor Classhas three-year annualized returns of 26.9%. As of the end of February 2022, DXSLX had 1 issue.

MFS Aggressive Growth Allocation Fund seeks diversification among different asset classes by investing most of its net assets in other mutual funds irrespective of their geographical location and market capitalization. MIAGX invests in growth and value funds.

MFS Aggressive Growth Allocation Fundhas three-year annualized returns of 11.7%. MIAGX has an expense ratio of 0.13% compared with the category average of 0.74%.

AlphaSimplex Managed Futures Strategy Fund Class A seeks capital appreciation by investing most of its net assets in the money market and other short-term, high-quality securities along with initial and variation margin payments relating to the fund's derivatives transactions. AMFAX generally invests in the financial services industry.

AlphaSimplex Managed Futures Strategy Fund Class Afundhas three-year annualized returns of 15.6%. Robert S. Rickard has been one of the fund managers of AMFAX since July 2010.

To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of funds.

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