Investors seeking total return, both regular income and long term capital appreciation, should include balanced funds in their portfolio. Balanced funds are perhaps the most flexible and actively managed category of mutual funds as their investments offer exposure across a variety of asset classes and sectors. Moreover, these funds not only seek to provide good returns during favorable market conditions, but also provide protection against substantial capital loss 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, investors can click here to see the complete list of funds.

Mutual Fund

Yield

ING Franklin Income Portfolio Advantage

5.69%

Federated Capital Income A

5.12%

JPMorgan Income Builder A

4.73%

Principal Global Diversified Income A

4.47%

MFS Diversified Income A

3.08%
 

ING Franklin Income Portfolio Advantage (IIFAX) seeks high income. The fund invests in a wide range of debt and equity securities. The fund focuses on purchasing income yielding and stocks. It also invests in common stocks from a number of sectors. The balanced mutual fund returned 10.99% 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 high income yielding equity and fixed-income securities. It may also purchase and sell foreign currencies or non dollar denominated fixed income securities in order to manage its foreign currency exposure. The balanced mutual fund returned 11.67% 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 appreciably high income. The fund invests in a wide range of income yielding domestic and foreign debt and equity securities. It may invest all its assets in securities rated below investment grade. A maximum of 70% of its assets may be utilized to purchase junk bonds. The balanced mutual fund returned 13.36% in the last one year period.

As of October 2012, this balanced mutual fund held 1575 issues, with 0.59% of its total assets invested in Merck & Co Inc.

Principal Global Diversified Income A (PGBAX) invests a large share of its assets in high yield bond securities, preferred securities, asset backed securities and those issued from emerging markets. The fund also purchases global real estate and infrastructure equity securities. The balanced mutual fund returned 14.76% in the last one year period.

The balanced mutual fund has an expense ratio of 1.16% compared to a category average of 0.90%.

MFS Diversified Income A (DIFAX) seeks current income with the secondary objective of capital growth. The fund invests in a wide range of domestic and foreign debt and equity securities. The fund concentrates on purchasing U.S. government securities compared to other forms of debt. The balanced mutual fund returned 12.19% in 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.


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