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5 Top Zacks #1 Rank Balanced Mutual Funds

Zacks Equity Research
Updated

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 5 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.

Calvert Moderate Allocation A (CMAAX) is a "fund of funds" that invests in both equity and fixed-income securities through underlying funds managed by Calvert. CMAAX considers factors including financial strength and social responsibility to select its investment. CMAAX may also invest in money market derivatives. The Calvert Moderate Allocation A fund has a five-year annualized return of 9.5%.

CMAAX has an expense ratio of 0.64% as compared to category average of 0.89%.

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Elfun Diversified (ELDFX) seeks high total return with capital preservation. ELDFX invests in equity and debt securities throughout the globe. ELDFX invests in equity securities of companies that are believed to have an impressive capital growth prospect. ELDFX invests in debt securities that are rated investment grade. The Elfun Diversified fund has a five-year annualized return of 8.5%.

As of July 2015, ELDFX held 942 issues with 3.01% of its assets invested in S+p Mid 400 Emini Sep15 Xcme 20150918.

Schwab MarketTrack Balanced (SWBGX) invests a major portion of its assets in equity securities and to a lesser extent in bond. SWBGX is expected to maintain a portfolio having 60% of its assets invested in stock, 35% in fixed income securities and 5% in cash, including money market securities. The Schwab MarketTrack Balanced fund has a five-year annualized return of 8.7%.

Zifan Tang is the fund manager and has managed SWBGX since 2012.

Nuveen Strategy Balanced Allocation A (FSGNX) seeks capital appreciation and current income. FSGNX invests in underlying funds to allocate its assets in both equity and fixed income securities. FSGNX primarily invests larger share of its assets in equity funds compared to fixed income funds. The Nuveen Strategy Balanced Allocation A fund has a five-year annualized return of 8.4%.

FSGNX has an expense ratio of 0.47% as compared to category average of 0.89%.

Columbia Capital Allocation Moderate A (ABUAX) is a "fund of funds" that invest in securities through underlying funds that are managed or approved by Columbia Management Investment Advisers. ABUAX invests in equity securities, fixed income securities and other derivatives. ABUAX may invest a maximum of 20% of its assets in third party mutual funds and ETFs. The Columbia Capital Allocation Moderate A fund has a five-year annualized return of 8.4%.

As of June 2015, ABUAX held 198 issues with 12.71% of its assets invested in Columbia Intermediate Bond I.

To view the Zacks Rank and past performance of all balanced mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.


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Zacks Investment Research