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3 Top-Ranked Balanced Mutual Funds for a Healthy Portfolio
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Balanced funds offer investors 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.
The fund managers also enjoy the flexibility of changing 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 to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses.
State Farm Balanced Fund invests most of its net assets in equity securities of preferably large and medium-cap companies. STFBX advisors consider large and medium-cap companies as defined by S&P Dow Jones Indices at the time of investment.
State Farm Balanced Fund has three-year annualized returns of 9.4%. As of the end of March 2023, STFBX had 189 issues and 8.7% of its net assets invested in Apple.
Vanguard Wellington Fund invests more than half of its net assets, mostly in dividend-paying equity securities of large-cap companies. VWELX advisors also invest in fixed-income securities like investment-grade corporate bonds, government agency bonds, and mortgage-backed securities with the potential to generate current income.
Vanguard Wellington Fund has three-year annualized returns of 7.0%. VWELX has an expense ratio of 0.25% compared with the category average of 0.84%.
Fidelity Advisor Balanced Fund invests most of its net assets in equity securities, bonds and other debt securities, including lower-quality debt securities otherwise known as junk bonds. FAIGX advisors also invest a small portion of its net assets in fixed-income senior securities.
Fidelity Advisor Balanced Fund has three-year annualized returns of 8.2%. Steven Kaye has been one of the fund managers of FAIGX since September 2008.
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3 Top-Ranked Balanced Mutual Funds for a Healthy Portfolio
Balanced funds offer investors 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.
The fund managers also enjoy the flexibility of changing 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 to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses.
Below, we share with you three balanced mutual funds, viz. State Farm Balanced Fund (STFBX - Free Report) , Vanguard Wellington Fund (VWELX - Free Report) and Fidelity Advisor Balanced Fund (FAIGX - Free Report) . Each has 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.
State Farm Balanced Fund invests most of its net assets in equity securities of preferably large and medium-cap companies. STFBX advisors consider large and medium-cap companies as defined by S&P Dow Jones Indices at the time of investment.
State Farm Balanced Fund has three-year annualized returns of 9.4%. As of the end of March 2023, STFBX had 189 issues and 8.7% of its net assets invested in Apple.
Vanguard Wellington Fund invests more than half of its net assets, mostly in dividend-paying equity securities of large-cap companies. VWELX advisors also invest in fixed-income securities like investment-grade corporate bonds, government agency bonds, and mortgage-backed securities with the potential to generate current income.
Vanguard Wellington Fund has three-year annualized returns of 7.0%. VWELX has an expense ratio of 0.25% compared with the category average of 0.84%.
Fidelity Advisor Balanced Fund invests most of its net assets in equity securities, bonds and other debt securities, including lower-quality debt securities otherwise known as junk bonds. FAIGX advisors also invest a small portion of its net assets in fixed-income senior securities.
Fidelity Advisor Balanced Fund has three-year annualized returns of 8.2%. Steven Kaye has been one of the fund managers of FAIGX since September 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 funds.
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