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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. Fund managers of such funds also enjoy the flexibility of varying 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 in order to maximize gains, whereas a downturn sees them turning to fixed-income investments to stem losses. Below, we will share with you four 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. RidgeWorth Moderate Allocation Strategy Fund A (MUTF: SVMAX ) seeks capital growth over the long run and current income. In order to achieve its objective, SVMAX invests 40-60% of its assets in underlying funds that predominantly invest in equity securities. It also invests 30-60% of its assets in funds investing in fixed-income securities. SVMAX invests the rest of its assets in cash and cash equivalents, which also include unaffiliated money market funds, the U.S. government affiliated securities and short-term paper. The RidgeWorth Moderate Allocation Strategy A fund has a three-year annualized return of 4.4%. SVMAX has an expense ratio of 0.67% as compared to the category average of 0.89%. T. Rowe Price Personal Strategy Balanced Fund No Load (MUTF: TRPBX ) invests approximately 60% of its assets in stocks and 40% of its assets in bonds. TRPBX also invests in money market securities. It seeks to achieve maximum total return through capital appreciation and income. The T. Rowe Price Personal Strategy Balanced fund has a three-year annualized return of 5.6%. Charles M. Shriver is the fund manager since 20 1 1. John Hancock Funds Lifestyle Aggressive Portfolio A (MUTF: JALAX ) invests most of its assets in underlying funds, which in turn focus on acquiring equity securities. JALAX’s assets also get invested in underlying funds that primarily invest in fixed-income securities. It invests in a wide range of underlying funds that allocate their assets in equity securities of companies of any size throughout the globe. The John Hancock Funds Lifestyle Aggressive A fund has a three-year annualized return of 5. 1%. JALAX has an expense ratio of 0.47% as compared to the category average of 0.8 1%. Fidelity Balanced Fund No Load (MUTF: FBALX ) seeks income and capital growth. FBALX invests around 60% of its assets in equity securities and the remainder in a balance of debt securities including bonds and lower-quality debt instruments. FBALX is expected to invest a minimum of one-fourth of its assets in fixed-income senior securities. It invests in securities throughout the globe. The Fidelity Balanced fund has a three-year annualized return of 7.7%. As of January 20 16, FBALX held 1, 186 issues with 2.45% of its assets invested in Fidelity Cent Invt Portfolios. Original post Scalper1 News
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