Investors looking at both long term capital growth and regular income would do well to consider balanced funds. Balanced funds ensure that gains from rising markets are accompanied by relatively lower levels of risk since they can utilize the strengths of equity as well as fixed income securities. The composition of their portfolios also ensures that the capital invested is protected during a market downturn. Moreover, many funds in this category keep the relative shares of equity, debt and money market instruments fluid to enable them to respond to changing market conditions

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, investors can click here to see the complete list of funds.

Mutual Fund

Yield

ING Franklin Income Portfolio

5.82%

Federated Capital Income A

5.12%

Thornburg Investment Income Builder A

4.82%

Buffalo Flexible Income

3.61%

MFS Diversified Income A

3.1%
 
ING Franklin Income Portfolio (IIFAX) invests in a wide range of debt and equity securities The fund purchases corporate and foreign debt securities as well as domestic Treasury bonds. It also invests in stocks with high dividend yields. It focuses on acquiring common stocks. The balanced mutual fund returned 10.63% over the last one year period.

The balanced mutual fund has an expense ratio of 1.37% compared to a category average of 0.90%.

Federated Capital Income A (CAPAX) invests in equity securities and fixed income instruments which have the ability to deliver high levels of income. The fund focuses on acquiring fixed income securities with high current yields. The balanced mutual fund returned 11.16% over the last one year period.

The Fund Manager is John Nichol and he has managed this balanced mutual fund since 2000.

JPMorgan Income Builder A (JNBAX) seeks high income levels while also looking to appreciate the capital invested. The fund invests in a wide variety of domestic and foreign dent and equity securities. It may invest in both mature and emerging economies. The balanced mutual fund returned 11.36% over the last one year period.

The balanced mutual fund has an expense ratio of 0.74% compared to a category average of 0.90%.

Buffalo Flexible Income (BUFBX) invests in a wide spectrum of instruments like common stocks, convertible and non-convertible preferred stocks, convertible and non convertible debt securities, and junk bonds. The balanced mutual fund returned 14.17% over the last one year period.

As of June 2012, this balanced mutual fund held 131 issues, with 9.13% of its total assets invested in Fidelity Instl MM Fds Government I.

MFS Diversified Income A (DIFAX) seeks current income with a secondary objective of capital growth. The fund invests in common stock and preferred stock, bonds as well as cash. The fund focuses on investing in domestic firms, but may also invest in foreign companies. It selects common stock issued by growth oriented companies, regardless of their size. The balanced mutual fund returned 12.43% over the last one year period.

The Fund Manager is James T. Swanson and he has managed this balanced mutual fund since 2006.

To view the Zacks Rank and past performance of all balanced mutual funds, investors can click here to see the complete list of funds.

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.


 
(BUFBX): ETF Research Reports
 
(CAPAX): ETF Research Reports
 
(DIFAX): ETF Research Reports
 
(IIFAX): ETF Research Reports
 
(JNBAX): ETF Research Reports
 
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