4 Balanced Mutual Funds To Buy For Steady Returns

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. 

RidgeWorth Moderate Allocation Strategy A (SVMAX – MF report) 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. 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 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 (TRPBX – MF report) invests approximately 60% of its assets in stocks and 40% 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 has a three-year annualized return of 5.6%.

Charles M. Shriver is the fund manager since 2011.

JHancock Lifestyle Aggressive A (JALAX – MF report) 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. JALAX invests in a wide range of underlying funds that allocate their assets in equity securities of companies of any size throughout the globe. The JHancock Lifestyle Aggressive A fund has a three-year annualized return of 5.1%.