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3 Balanced Mutual Funds to Strengthen Your Portfolio

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Balanced funds offer investors 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.

The fund managers also enjoy the flexibility of changing 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 to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses.

Below, we share with you three top-ranked balanced mutual funds, viz. Permanent Portfolio (PRPFX - Free Report) , Vanguard Wellington Fund (VWELX - Free Report) and Hartford Balanced HLS IA (HADAX - 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.

Permanent Portfolio fund seeks to preserve and increase the purchasing power value of its shares over the long term by investing most of its net assets in gold, silver, Swiss franc assets, common stocks of real estate and natural resources in various proportions. PRPFX advisors also invest in aggressive growth stocks and in dollar assets.

Permanent Portfolio fund has three-year annualized returns of 6.3%. As of the end of April 2024, PRPFX had 71 issues and 3.4% of its net assets invested in Freeport-McMoRan.

Vanguard Wellington Fund invests more than half of its net assets, mostly in dividend-paying equity securities of large-cap companies. VWELX advisors also invest in fixed-income securities like investment-grade corporate bonds, government agency bonds, and mortgage-backed securities with the potential to generate current income.

Vanguard Wellington Fund has three-year annualized returns of 4.4%. VWELX has an expense ratio of 0.25%.

Hartford Balanced HLS fund invests most of its net assets in equity securities of large-cap domestic and foreign companies with market capitalizations similar to those companies listed on the S&P 500 Index. HADAX advisors also invest in debt securities and cash instruments.

Hartford Balanced HLS fund has three-year annualized returns of 4.4%. Matthew C Hand has been one of the fund managers of HADAX since May 2020.

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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