Market Overview

Top 5 Highest Yielding Balanced Mutual Funds - Highest Yielding Zacks #1 Ranked Funds

Balanced funds are the natural choice for investors seeking a secure investment option that offers both capital growth and steady income. This type of fund combines the benefits of equity, fixed-income securities and cash equivalents, thus ensuring that gains from the stock market are accompanied with relatively low levels of volatility. Moreover, the best balanced funds keep their allocation between assets open to changes, depending on the current market situation. This enables them to reap the benefits of a bull run and protect assets during difficult times.

Below we will share with you the 5 highest yielding Zacks #1 ranked balanced mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all balanced funds, then click here. 

Mutual Fund SEC YIELD
Mairs & Power Balanced 3.04%
Buffalo Balanced 2.98%
Vanguard Wellington 2.76%
State Farm Balanced 2.75%
Transamerica Balanced A 2.24%

Mairs & Power Balanced (MAPOX) seeks to provide current income which is at least 25% greater than that of the S&P 500 index. The fund focuses on acquiring common stock, related convertible securities as well as fixed-income securities. The fixed-income securities selected are usually rated relatively higher. The balanced mutual fund has a five year annualized return of 4.63%.

The balanced mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.83% compared to a category average of 1.01%.

Buffalo Balanced (BUFBX) invests in a mix of stocks, convertible securities, and debt. Its debt investments may be rated as well as unrated and may include securities rated below investment grade. The balanced mutual fund has a ten year annualized return of 5.34%.

As of September 2010, this balanced mutual fund held 55 issues, with 9.78% of its total assets invested in Fidelity Institutional Money Market Funds Government I.

Vanguard Wellington (VWELX) invests 60-70% of its assets in common stocks of prominent large and mid-cap companies. The balance 30-40% of its assets are utilized to purchase bonds, the bulk of which are issued by companies and rated investment grade. The balanced mutual fund is non-diversified and returned 6.43% over the last one year period.

The Fund Manager is Edward P. Bousa and he has managed this balanced mutual fund since 2002.

State Farm Balanced (STFBX) invests 60% to 75% of its assets in common stocks. At least 25% of its assets are used to purchase fixed income securities. This includes preferred stock and debt securities with longer maturity periods; rated investment grade. The balanced mutual fund has a five year annualized return of 4.78%. The balanced mutual fund has a minimum initial investment of $250 and an expense ratio of 0.14% compared to a category average of 1.01%.

Transamerica Balanced A (IBALX) seeks capital appreciation with the secondary objective of current income. Common stocks constitute the majority of the fund's investments. The remainder of its assets is utilized to purchase high quality bonds with maturity periods not exceeding 30 years. This balanced mutual fund returned 21.13% in the last one year period.

The Fund Manager is Greg Haendel and he has managed this balanced mutual fund since 2008.

To view the Zacks Rank and past performance of all balanced mutual funds, then click here.

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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/


 
Zacks Investment Research

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

Related Articles (IBALX + BUFBX)

Around the Web, We're Loving...

Get Benzinga's Newsletters