Top 10 Best Balanced Mutual Funds

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					Intro
Balanced funds or diversified funds are very popular among long term or short term investors. It
is even popular for buy and hold investor or retired people. Balanced funds are also known as
hybrid funds. These types of funds can invest its asset in fixed income securities or bonds,
preferred stocks or convertible stocks, and stock or equity. The asset allocation can vary from
one fund to the other funds depending upon its investment style. There are several investment
styles for these balanced funds such as conservative allocation, moderate allocation, aggressive
allocation, and world allocation.
Note: this list include domestic balanced funds and foreign balanced funds
One of the advantage in investing in this balanced funds are the fund can manage downturns in
stock market without too much of a loss. The following is the top 10 best balanced funds:
     American Funds Capital Income Builder
     American Funds Income Fund of America
     Franklin Income A
     Vanguard Wellington
     American Funds American Balanced
     BlackRock Global Allocation
     First Eagle Global A
     Ivy Asset Strategy A
     Fidelity Balanced
     Fidelity Puritan

Top 10 Best Balanced Funds
(click column header to sort results)

         Mutual Funds                   Morningstar       Expense Total Asset         Min. To
No                           Ticker                 Yield
          Description                     rating           ratio     (Bil)            Invest
     American Funds Capital
1                           CAIBX 3                 3.98% 0.66%        76.36         $250
     Inc Bldr
     American Funds Inc
2                           AMECX 4                 4.09% 0.61%        67.20         $250
     Fund of Amer
3 Franklin Income A         FKINX 3                 6.87% 0.65%        55.32         $1,000
4 Vanguard Wellington       VWELX 5                 2.93% 0.34%        51.34         $3,000
     American Funds
5                           ABALX 3                 2.12% 0.67%        49.34         $250
     American Balanced
1. American Funds Capital Income Builder
American Funds Capital Income Builder fund seeks to provide current income and a growing
income stream for future. This American Funds normally invests most of its assets (>90%) in
income-producing securities, >50% in stock securities. It may invest in foreign bonds and stocks
as well. The fund lead manager is James B. Lovelace since 1991. This fund is categorized as
world allocation balanced fund. I would consider this fund has moderate allocation with >50%
asset in stocks. Investor can invest in this fund with minimum initial of $250. The fund expense
ratio is 0.66% per year. There are front end sales charge of 5.75% and 12b1 fee of 0.23%.
Investor may find other class with no sales charge fee or 12b1 fee. The fund has returned -0.73%
over the past year and 6.51% over the past decade based on load adjusted returns.
As of February 2011, the asset mix is as follows 42.7% of Non-US Equities, 30.6% of US
Equities, 18.6% of US Bonds, 3.4% of Non US Bonds, and 4.7% of Cash & Equivalent. The top
5 largest industry holdings include Diversified telecommunication services; Oil, gas &
consumable fuels; Tobacco; Pharmaceutical; and Commercial banks. Top 5 largest holdings in
this fund include: Stocks & convertible securities (72.4%), US Corporate Bonds (5.9%), Federal
Agency Mortgage bonds (5.3%), Cash (5.1%), and US Treasuries (4.1%).Top 10 largest equity
holdings include Philip Morris International, AT&T, Royal Dutch Shell, Altria, ConocoPhillips,
Novartis, Merck, GDF Suez, America Movil, and Kraft Foods.

2. American Funds Income Fund of America
American Funds Income Fund of Americainvestment seeks current income and capital
appreciation. The fund invests primarily in income-producing securities such as dividend paying
common stocks, and interest paying bonds. It usually invests >60% of assets in stocks and other
equity securities. The fund may in foreign stocks and bonds. The fund lead manager is Abner D.
Goldstine since 1973. This fund is categorized as moderate allocation balanced fund. The annual
expense ratio of this fund is 0.61%. As typical American Funds Class A fund, there are front end
sales charge of 5.75% and 12b1 fee of 0.24%. The fund has returned 3.05% over the past year
and 2.48% over the past 5 years based on load adjusted returns. This fund can be purchased
through 71 brokerages like E*Trade Financial, TD Ameritrade Inc, Raymond James, US
Bancorp Investment, JP Morgan, etc.
As of February 2011, the fund asset mix is as follows 45.8% of US Equities, 24.8% of US
Bonds, 19.7% of Non US Equities, 5.1% of Non US Bonds, and 4.6% of Cash. Top 5 largest
industry holdings include oil & consumable fuels, pharmaceuticals, diversified
telecommunication services, commercial banks, and Real Estate Investment Trusts (REITs). Top
10 largest equity holdings include Verizon, Home Depot, Royal Dutch Shell, Merck, Chevron,
Bristol-Myers Squibb, Waste Management, DuPont, Philip Morris International, and GDF Suez.

3. Franklin Income A
TheFranklin Income fund objective is to maximize income while maintaining prospects for
capital appreciation. The fund usually invests in a diversified portfolio of debt and equity
securities. It may invest below investment-grade debts, corporate debt, foreign debt, U.S.
Treasury bonds, dividend paying stocks, and foreign securities. This Franklin Income fund is part
of Franklin Templeton Investment Fund Family. The fund has been managed by Charles B.
Johnson since 1957. This fund is categorized as conservative allocation balanced fund. The
annual expense ratio of this fund is 0.65%. As typical American Funds Class A fund, there are
front end sales charge of 4.25% and 12b1 fee of 0.15%. The fund has returned 7.82% over the
past year and 4.46% over the past 5 years based on load adjusted returns. Investor can buy this
mutual fund online through 97 brokerages or any discount brokerages. The fund also has a 3
stars rating from Morningstar research team.
As of January 2011, the fund asset mix includes 56% of other investment, 35% of Stocks, and
9% of convertibles. Top 5 sector breakdown is as follows: Corporate Bond, Utilities, Financials,
Energy, and Loans. Top 5 bond holdings include Energy Future Holdings Corp, CIT Group Inc,
First data Corp, Freescale Semiconductor Inc, and HCA Inc. The Top 5 Equity holdings include
Exxon Mobil Corp, Merck & Co, Well Fargo & Co, Roche Holdings AG, and Southern Co.

4. Vanguard Wellington Inv
Vanguard Wellington investment seeks to offer long-term capital appreciation and reasonable
current income. The fund invests 60% - 70% of assets in dividend-paying of medium-size and
large companies. It invests 30% - 40% of the fund's assets mainly in fixed income securities or
bonds. These fixed incomes include investment-grade corporate bonds, U.S. Treasury and
government agency bonds, and mortgage-backed securities. Vanguard Wellington is one of the
funds with 5 stars rating from Morningstar. The fund expense ratio is only 0.35% per year. You
will need $10,000 initial capital to invest in this Vanguard fund. It also has a yield of 2.93% per
year. The fund has been managed by Edward P. Bousa since 2002. There is no sales charge or
12b1 fee. The fund is also available in 73 different brokerages include Vanguard Brokerage.
As of February 2012, the fund asset allocation is as follows: 66.90% in stocks, 29.88% in Bonds,
and 3.22% in Short term reserves. The fund also holds 471 bond holdings with average duration
of 5.4 years. There are 106 stocks in its asset, about 11.4% in foreign stocks. Top 5 equity sector
diversification is financials, energy, health care, information technology, and Industrials. The top
10 largest equity holdings include Exxon Mobil Corp, AT&T Inc, International Business
Machines Corp, Wells Fargo & Co, Chevron Corp, Pfizer Inc, JPMorgan Chase & Co, Merck &
Co Inc, Eli Lily & Co, and Metlife Inc.

5. American Funds American Balanced Fund
American Funds American Balanced fund objective to provide capital conservation, current
income and long-term growth of capital and income. The fund invests in a broad range of
securities, including stocks, bonds and securities issued and guaranteed by the U.S. government.
It may invest >50% of assets in stocks or equities and > 25% of assets in debt securities,
including money market securities. The fund lead manager is Robert G. O'Donnell since 1986.
This fund is categorized as moderate allocation balanced fund. The annual expense ratio of this
fund is 0.67%. As typical American Funds Class A fund, there are front end sales charge of
5.75% and 12b1 fee of 0.24%. The fund has returned 2.38% over the past year and 4.92% over
the past decade based on load adjusted returns. This fund can be purchased through 71
brokerages or any discount brokerage.
As of February 2011, the fund asset mix is as follows 61.6% of US Equities, 26.4% of US
Bonds, 5.0% of Non US Equities, 2.7% of Non US Bonds, and 4.3% of Cash. Top 5 largest
industry holdings include oil & consumable fuels, Chemicals, pharmaceuticals, commercial
banks, and Aerospace & defense. Top 10 largest equity holdings include Chevron, Wells Fargo
& Co, Philip Morris International, Home Depot, Goldman Sachs, Royal Dutch Shell, Microsoft,
Berkshire Hathaway, Oracle, and American Express.
More on my next article: Top 10 Best Balanced Mutual Funds Part 2
Disclosure: I have no affiliation with any of these funds. I also have no position in these funds.
Please do your own research for additional details. Please trade and invest responsibly. Past
Performance is No Guarantee of Future Results.

Top 10 best balanced funds performance
(click column header to sort results)

No            Mutual Funds Description                Ticker      1 Yr     3 Yr     5 Yr    10 Yr
1    American Funds Cap Inc Bld                      CAIBX      -0.73% -6.29% 2.67% 6.51%
2    American Funds Inc Fund of Amer                 AMECX 3.05%         -3.92% 2.48% 5.77%
3    Franklin Income A                               FKINX      7.82%    -0.82% 4.46% 6.82%
4    Vanguard Wellington                             VWELX 6.43%         0.05%    4.81% 6.15%
5    American Funds American Balanced                ABALX 2.38%         -3.06% 1.83% 4.92%
6    BlackRock Global Allocation Inv                 MDLOX 7.70%         1.06%    5.61% 7.90%
7    First Eagle Global A                            SGENX 13.95% 4.05%           6.52% 12.21%
8    Ivy Asset Strategy A                            WASAX 5.88%         -1.06    7.79% 8.58%
9    Fidelity Balanced                               FBALX 17.87% 2.12%           3.50% 5.86%
10 Fidelity Puritan                                  FPURX      18.17% 2.95%      4.40% 4.79%

				
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posted:9/19/2011
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About my name is Mohsin Ali