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Investors looking to gain exposure to both equity and fixed income securities may consider balanced mutual funds. Also, these mutual funds are believed to provide greater returns compared to 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 raise the share of fixed income securities during a downturn to avoid losses, the share of equity securities may be increased during an upswing. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
Bruce Fund (BRUFX - Free Report) mostly invests in domestic common stocks, convertible bonds and “zero coupons” government bonds. BRUFX may invest in future interest and principal of U. S. government securities (“zero coupons” bonds) without any limit. BRUFX seeks long-term growth of capital. The Bruce Fund has a three-year annualized return of 9.2%.
BRUFX has an expense ratio of 0.68%, lower than the category average of 0.85%.
Invesco Income Allocation A (ALAAX - Free Report) seeks current income. ALAAX invest in both U.S. and non-U.S. companies, fixed income instruments and REITs. It allocates 60–70% of its assets in fixed-income instruments and 30–40% in equities. The Invesco Income Allocation A fund has a three-year annualized return of 4.2%.
Duy Nguyen is the portfolio manager of ALAAX since 2014.
Franklin Balanced A (FBLAX - Free Report) invests in dividend yielding stocks, debt securities and convertible instruments. A minimum of 25% of its assets are invested in debt securities, which include bonds, notes, debentures and money market securities. FBLAX aims to invest a maximum of 15% of its assets in foreign securities or issuers domiciled outside the U.S. FBLAX seeks both income and capital appreciation. The Franklin Balanced A fund has a three-year annualized return of 4.2%.
As of March 2016, FBLAX held 150 issues, with 1.60% of its total assets invested in JP Morgan Chase & Co.
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.
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3 Top-Rated Balanced Mutual Funds to Buy Now
Investors looking to gain exposure to both equity and fixed income securities may consider balanced mutual funds. Also, these mutual funds are believed to provide greater returns compared to 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 raise the share of fixed income securities during a downturn to avoid losses, the share of equity securities may be increased during an upswing. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
Below we will share with you three 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.
Bruce Fund (BRUFX - Free Report) mostly invests in domestic common stocks, convertible bonds and “zero coupons” government bonds. BRUFX may invest in future interest and principal of U. S. government securities (“zero coupons” bonds) without any limit. BRUFX seeks long-term growth of capital. The Bruce Fund has a three-year annualized return of 9.2%.
BRUFX has an expense ratio of 0.68%, lower than the category average of 0.85%.
Invesco Income Allocation A (ALAAX - Free Report) seeks current income. ALAAX invest in both U.S. and non-U.S. companies, fixed income instruments and REITs. It allocates 60–70% of its assets in fixed-income instruments and 30–40% in equities. The Invesco Income Allocation A fund has a three-year annualized return of 4.2%.
Duy Nguyen is the portfolio manager of ALAAX since 2014.
Franklin Balanced A (FBLAX - Free Report) invests in dividend yielding stocks, debt securities and convertible instruments. A minimum of 25% of its assets are invested in debt securities, which include bonds, notes, debentures and money market securities. FBLAX aims to invest a maximum of 15% of its assets in foreign securities or issuers domiciled outside the U.S. FBLAX seeks both income and capital appreciation. The Franklin Balanced A fund has a three-year annualized return of 4.2%.
As of March 2016, FBLAX held 150 issues, with 1.60% of its total assets invested in JP Morgan 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.