Zacks #1 Ranked Balanced Funds
By creating a diversified portfolio of both stocks and bonds, balanced funds ensure that they harness the inherent strengths of both classes of instruments. Most of the competently managed funds in this category keep the proportion of assets invested in different asset classes flexible and make adjustments in keeping with prevailing market conditions. This ensures that fixed-income securities protect the portfolio from losses during a downturn while equity securities harness maximum gains from a rising market.
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Below we will share with you 5 top rated balanced mutual funds. Each has earned a Zacks #1 Rank (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.
Delaware Foundation Moderate Allocation A (DFBAX) invests 60% of its assets in equity securities while the remainder is allocated for fixed income instruments. A maximum of 15% of its assets are invested in securities issued by the emerging markets. Between 10% to 60% of its assets are invested in foreign securities. The balanced mutual fund returned 9.96% over the last one year period.
Francis Morris is the fund manager and has managed this balanced mutual fund since 2004.
State Farm Balanced (STFBX) seeks principal growth and current income on a long-term basis. The fund invests 60% to 75% of its assets in equity securities of those companies whose market cap is at least $1.5 billion. The remainder is invested in fixed income securities that are backed by the U.S. government. The balanced mutual fund returned 7.82% over the last one year period.
As of June 2013, this balanced mutual fund held 300 issues, with 4.67% of its total assets invested in Walt Disney Co.
T. Rowe Price Balanced (PAXWX) invests 60% to 75% of its assets in equity securities while the remainder is invested in debt securities. The balanced mutual fund returned 11.01% over the last one year period.
The balanced mutual fund has an expense ratio of 0.94% compared to a category average of 0.89%.
DWS Global Income Builder A (KTRAX) seeks maximum income in addition to capital growth. The fund invests in securities irrespective of size, category or credit worthiness issued by any company in the globe. A minimum of 40% of its assets are invested in securities issued by foreign companies. Fixed income senior securities attract an investment of a minimum of 25%. The balanced mutual fund returned 10.87% over the last one year period.
Thomas J. Schuessler is the fund manager and has managed this balanced mutual fund since 2012.