The Top 5 Balanced Funds for Low-Risk Investors
Investing in mutual funds is a great way to diversify your portfolio and achieve steady growth over time. However, it can be difficult to know which mutual funds to choose, especially for low-risk investors. Balanced funds offer a great solution for those looking to balance their portfolios with both equity and fixed-income investments. Here are the top 5 balanced funds for low-risk investors:
1. Vanguard Wellington Fund (VWELX)
The Vanguard Wellington Fund is a classic balanced fund that has been around since 1929. It invests 60% of its assets in stocks and 40% in bonds, making it a great choice for low-risk investors. The fund is managed by Wellington Management Company and has a low expense ratio of 0.25%. Over the past 10 years, the Vanguard Wellington Fund has averaged an annual return of 8.87%.
2. Fidelity Balanced Fund (FBALX)
The Fidelity Balanced Fund invests in both domestic and international stocks and bonds. It has a 60/40 split between equities and fixed-income securities, with a focus on high-quality bonds. The fund is managed by Geode Capital Management and has a low expense ratio of 0.53%. Over the past 10 years, the Fidelity Balanced Fund has averaged an annual return of 9.27%.
3. T. Rowe Price Capital Appreciation Fund (PRWCX)
The T. Rowe Price Capital Appreciation Fund is another great option for low-risk investors. It invests in a mix of growth and value stocks, as well as fixed-income securities. The fund has a 70/30 split between equities and fixed-income securities and is managed by David Giroux. The expense ratio for the T. Rowe Price Capital Appreciation Fund is 0.70%. Over the past 10 years, the fund has averaged an annual return of 10.47%.
4. American Funds Conservative Growth and Income Fund (CFGIX)
The American Funds Conservative Growth and Income Fund is a balanced fund that invests in a mix of stocks and bonds. The fund has a 50/50 split between equities and fixed-income securities and is managed by Gregg Wolper. The expense ratio for the American Funds Conservative Growth and Income Fund is 0.53%. Over the past 10 years, the fund has averaged an annual return of 9.61%.
5. BlackRock Global Allocation Fund (MDLOX)
The BlackRock Global Allocation Fund is a unique balanced fund that invests in a variety of assets, including stocks, bonds, and commodities. The fund has a 60/40 split between equities and fixed-income securities, with a global focus. The fund is managed by Dennis Stattmann and has an expense ratio of 0.76%. Over the past 10 years, the BlackRock Global Allocation Fund has averaged an annual return of 6.71%.
In conclusion, these five balanced funds offer low-risk investors a great way to achieve steady growth while balancing their portfolios with both equity and fixed-income investments. It’s important to keep in mind that past performance is not indicative of future results, but by investing in a well-diversified balanced fund with a low expense ratio, you can be confident in your investment choices.