4 Best-Ranked Balanced Mutual Funds To Add To Your Portfolio
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 4 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. To view the Zacks Rank and past performance of all balanced funds, investors can click here to see the complete list of funds. New Covenant Balanced Growth (MUTF: NCBGX ) seeks capital growth with minimized risk. NCBGX allocates its assets among the New Covenant Growth Fund and the New Covenant Income Fund. NCBGX invests 45% to 75% of its assets in the growth fund and the rest of its assets in the income fund. The New Covenant Balanced Growth fund returned 1.5% in the last one year. NCBGX has an expense ratio of 0.14% as compared to a category average of 0.89%. Schwab Balanced (MUTF: SWOBX ) maintains a diversified portfolio by investing in other Schwab and/or Laudus Funds. SWOBX allocates within the range of 55% to 65% of its assets in equity securities and 35-45% in fixed income instruments. SWOBX is expected to invest a minimum of one-fourth of its assets in equity and fixed income securities. SWOBX may invest all of its assets in instruments including money market instruments, repurchase agreements and other short-term obligations in order to take a defensive stance during unfavorable market or economic conditions. The Schwab Balanced fund returned 3.9% in the last one year. Zifan Tang is the fund manager and has managed SWOBX since 2012. RidgeWorth Moderate Allocation Strategy 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 invests in equity securities. SVMAX 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 returned 1.9% in the last one year. As of September 2015, SVMAX held 33 issues, with 27.86% of its total assets invested in RidgeWorth Seix Total Return Bond IS T. Rowe Price Personal Strategy Balanced (MUTF: TRPBX ) invests between 50% and 70% of its assets in stocks and 30-50% of its assets in bonds. TRPBX also invests in money market securities. TRPBX seeks to achieve maximum total return through capital appreciation and income. The T. Rowe Price Personal Strategy Balanced fund returned 2.1% in the last one year. Charles M. Shriver is the fund manager and has managed TRPBX since 2011. Original Post