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

Balanced funds provide investors with the convenience of buying into a single fund rather 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 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.



Wells Fargo Advantage Growth Balanced (NVGBX) seeks both capital growth and current income. At present, the fund's portfolio consists of the different equity and fixed income of various master portfolios. As per the fund's “neutral” target allocation 655 of its assets are invested in equities and 35% in bonds. The balanced mutual fund returned 24.03% over the last one year period.

The Fund Manager is Jeffrey Mellas and he has managed this balanced mutual fund since 2003.

Natixis Income Diversified A (IIDPX) invests in equity and fixed-income securities which generate income. The fund seeks current income with capital growth as a secondary objective. It aims to holds a diversified portfolio of varied income generating securities. The balanced mutual fund has a three year annualized return of 7.96%.

The balanced mutual fund has a minimum initial investment of $10,000 and an expense ratio of 1.19% compared to a category average of 0.86%.

CornerCap Balanced (CBLFX) seeks capital growth over the long term and current income. Around 50% to 80% of its assets are utilized to purchase stocks and 20% to 50% are invested in debt securities. The fund focuses on investing in common stocks of large and mid-sized domestic firms. This balanced mutual fund returned 16.62% in the last one year period.

The Fund Manager is Thomas E. Quinn and he has managed this balanced mutual fund since 1997.

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 ten year annualized return of 4.75%.

As of March 2011, this balanced fund held 74 issues, with 3.47% of its total assets invested in Walt Disney Company.

UBS Dynamic Alpha A (BNAAX) seeks maximum total return by investing in securities providing exposure to global stocks, bonds and money market instruments. It is non-diversified and may also invest in open-ended investment companies advised by UBS. The fund returned 2.71% over the last one year period.

The balanced mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.35% compared to a category average of 1.66%.

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/mutualfunds/.