Investors looking to gain exposure to both equity and fixed income securities may consider balanced mutual funds. Also, these mutual funds are believed to provide greater returns compared to pure fixed income investments while maintaining a low volatility level. Meanwhile, the proportion of equity and fixed income investments in these funds may also vary in response to market conditions. While managers may raise the share of fixed income securities during a downturn to avoid losses, the share of equity securities may be increased during an upswing. Hence, these funds are expected to harness the inherent strengths of both classes of investments.

Below we will share with you four top rated balanced mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect the fund to outperform its 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.

Cohen & Steers Preferred Securities & Income A (CPXAX - MF report) seeks total return over the long run. CPXAX invests a lion’s share of its assets in securities including both preferred and debt securities issued throughout the globe. CPXAX invests a minimum of 25% of its assets in securities from the financial domain. CPXAX may invest not more than 15% of its assets in securities of companies located in emerging countries. The Cohen & Steers Preferred Securities & Income A fund returned 5.5% in the year-to-date frame.

As of September 2015, CPXAX held 215 issues with 1.86% of its assets invested in Jpmorgan Chase FRN.

Bruce Fund (BRUFX - MF report) mostly invests in domestic common stocks, convertible bonds and “zero coupons” government bonds. BRUFX may invest in future interest and principal of U. S. government securities (“zero coupons” bonds) without any limit. The Bruce fund returned 3.4% in the year-to-date frame.

BRUFX has an expense ratio of 0.68%, lower than the category average of 0.90%.

Fidelity Puritan (FPURX - MF report) seeks growth of income and capital subject to reasonable risk. FPURX invests around 60% of its assets in equity securities including stocks. Rest of the assets gets invested in bond and other debt securities, which also include below investment grade securities. FPURX also invest a minimum of 25% of its assets in fixed-income senior securities. The Fidelity Puritan fund returned 2.8% in the year-to-date frame.

Ramin Arani is one of the fund managers of FPURX since 2007.

VALIC Company I Asset Allocation (VCAAX - MF report) allocates its assets across stocks, long-term debt securities and short-term money market securities to provide maximum return. VCAAX may vary the proportions of assets in respective classes according to market condition. VCAAX may also invest all of its assets in a particular asset category. The VALIC Company I Asset Allocation fund returned 0.5% in the year-to-date frame.

VCAAX has an expense ratio of 0.68%, lower than the category average of 0.90%.