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3 Top-Ranked Balanced Mutual Funds for Stable Returns

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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 balanced mutual funds, viz. Sit Balanced Fund (SIBAX - Free Report) , T. Rowe Price Balanced Fund (RPBAX - Free Report)  and Dodge & Cox Balanced Fund (DODBX - 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.

Sit Balanced Fund invests its assets in common stocks of domestic growth companies with a capitalization of $5 billion or more. SIBAX advisors also invest primarily in debt securities for the fixed-income portion of the fund's portfolio.

Sit Balanced Fund has three-year annualized returns of 16.7%.  As of the end of September 2025, SIBAX had 69 issues and 8.4% of its net assets invested in NVIDIA.

Rowe Price Balanced Fund invests most of its assets in a portfolio of stocks and fixed-income senior securities based on market conditions. RPBAX advisors may also invest in foreign issues.

Rowe Price Balanced Fund has three-year annualized returns of 13.8%. RPBAX has an expense ratio of 0.56%.

Dodge & Cox Balanced Fund seeks long-term growth and capital appreciation along with current income by investing most of its net assets in a diversified portfolio of equity and debt securities in various proportions. DODBX advisors may also invest a small portion of their net assets in U.S. dollar-denominated equity or debt securities of foreign issuers traded in the United States but not part of the S&P 500 Index.

Dodge & Cox Balanced Fund has three-year annualized returns of 7.2%. David C. Hoeft has been one of the fund managers of DODBX since January 2002.

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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