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.
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 these shifting loyalties to fixed income investments to stem losses.
Below we will share with you three top-ranked balanced mutual funds. Each has earned 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 balanced mutual funds, their Zacks Rank and past performance.
Brown Advisory Flexible Equity Investor (BIAFX - Free Report) invests a bulk of its assets in a wide range of portfolio of equity securities issued by medium and large market capitalization companies. The fund may also invest almost 15% of its assets in non-U.S. securities, which include emerging markets. BIAFX seeks appreciation of capital for the long run. Brown Advisory Flexible Equity Investor has returned 10.5% in the last three-year period.
BIAFX has an expense ratio of 0.88% compared with the category average of 1.11%.
AdvisorOne CLS Global Aggressive Equity N (CLACX - Free Report) seeks strong growth for the long run. CLACX invests the lion's share of its assets in equity securities. The fund invests in underlying funds that look for appreciation of capital. The fund normally invests in ETFs, and in open- and close-end funds. AdvisorOne CLS Global Aggressive Equity N has returned 9.9% in the last three-year period.
As of October 2017, CLACX held 38 issues, with 6.49% of its assets invested in VanEck Vectors Morningstar Wide Moat ETF.
Fidelity Asset Manager 70% Fund (FASGX - Free Report) seeks maximization of returns for the long run. FASGX achieves its objective by investing the lion’s share of its assets in stocks, bonds, short-term instruments and other securities. Fidelity Asset Manager 70% Fund has three-year annualized returns of 7.6%.
Geoffrey Stein has been the fund manager of FASGX since 2009.
To view the Zacks Rank and past performance of all balanced mutual funds, investors can click here to see the complete list of funds.
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