Investors looking to gain exposure to both equity and fixed income securities may consider balanced mutual funds. Also, these mutual funds are believed to provide greater returns compared to pure fixed income investments while maintaining a low volatility level. Meanwhile, the proportion of equity and fixed income investments in these funds may also vary in response to market conditions. While managers may raise the share of fixed income securities during a downturn to avoid losses, the share of equity securities may be increased during an upswing. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
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. To view the Zacks Rank and past performance of all balanced funds, investors can click here to see the complete list of funds.
Cohen & Steers Preferred Securities & Income A (CPXAX - MF report) seeks total return over the long run. CPXAX invests a lion’s share of its assets in securities including both preferred and debt securities issued throughout the globe. CPXAX invests a minimum of 25% of its assets in securities from the financial domain. CPXAX may invest not more than 15% of its assets in securities of companies located in emerging countries. The Cohen & Steers Preferred Securities & Income A fund returned 5.5% in the year-to-date frame.
As of September 2015, CPXAX held 215 issues with 1.86% of its assets invested in Jpmorgan Chase FRN.
Bruce Fund (BRUFX - MF report) mostly invests in domestic common stocks, convertible bonds and “zero coupons†government bonds. BRUFX may invest in future interest and principal of U. S. government securities (“zero coupons†bonds) without any limit. The Bruce fund returned 3.4% in the year-to-date frame.
BRUFX has an expense ratio of 0.68%, lower than the category average of 0.90%.
