Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.
The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.
Below, we share with you three top-ranked balanced mutual funds, viz., Arrow Managed Futures Stragegy Fund MFTFX, Schwab MarketTrack All Equity Portfolio SWEGX and Fidelity Balanced Fund FBALX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Arrow Managed Futures Stragegy Fund seeks to achieve its objective by employing both a fixed-income strategy and futures strategy. MFTFX manages a futures strategy through a wholly-owned subsidiary, while the fixed-income strategy involves investments in a range of financial instruments with short-term maturities.
Arrow Managed Futures Strategy Fund has three-year annualized returns of 12.3%. As of January 2023, MFTFX held 1 issue with 27.6% of its assets invested in ARROW RESERVE CAPITAL MAN.
Schwab MarketTrack All Equity Portfolio fund seeks high capital growth through an all-stock portfolio. SWEGX advisors maintain a defined asset allocation to achieve its goal and the portfolio’s target allocation is 100% in stock investments with certain percentages for different segments of the stock market.
Schwab MarketTrack All Equity Portfolio has three-year annualized returns of 11.4%. SWEGX has an expense ratio of 0.39% compared with the category average of 0.74%.
Fidelity Balanced Fund seeks income and capital growth consistent with reasonable riskby investing in domestic and foreign issuers. FBALX advisors choose to invest in stocks and other equity securities and in bonds and other debt securities.
Fidelity Balanced Fund has three-year annualized returns of 10.8%. Steven Kaye has been one of the fund managers of FBALX since 2008.
To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds.
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