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Grab These 3 Balanced Mutual Funds for Amazing Returns

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Balanced funds offer investors the convenience of buying 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 top-ranked balanced mutual funds, namely Permanent Portfolio Permanent (PRPFX - Free Report) , American Funds American Balanced (ABALX - Free Report)  and Dodge & Cox Balanced Fund (DODBX - Free Report) . 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.

Permanent Portfolio Permanent is a fund that is structured as follows: 20% in gold, 5% in silver, 10% in Swiss franc–denominated assets, 15% in real estate and natural resource stocks, 15% in aggressive growth stocks and 35% in U.S. dollar assets. PRPFX is non-diversified.

Permanent Portfolio Permanent has three-year annualized returns of 17.6%.  As of April 2025, PRPFX had 75 issues with 4.6% of its net assets invested in Texas Pacific Land.

American Funds American Balanced follows a balanced strategy, investing in common stocks, investment-grade bonds and securities issued or guaranteed by the U.S. government and federal agencies. It may also invest in dividend-paying stocks, bonds and other securities of foreign issuers.

American Funds American Balanced has three-year annualized returns of 12.8%. ABALX has an expense ratio of 0.56%.

Dodge & Cox Balanced Fund aims to achieve long-term capital growth and current income by investing the majority of its net assets in a diversified mix of equity and debt securities, allocated in varying proportions. DODBX may also allocate a small portion of assets to U.S. dollar-denominated equity or debt securities issued by foreign companies and traded in the United States, provided they are not included in the S&P 500 Index.

Dodge & Cox Balanced Fund has three-year annualized returns of 11.8%. David C. Hoeft has been one of the fund managers of DODBX since January 2002.

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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