The best no load retirement income balanced mutual funds for 2013 are American Beacon Retire Income & Appreciation, Vanguard Target Retirement Income fund, T. Rowe Price Retirement Income, etc.
Top Retirement Income Funds
Retirement income mutual funds are part of target date balanced funds. Retirement income funds offer a combination of equities, fixed income securities, and cash equivalent for investors already in or entering retirement age. The funds are managed based on a conservative asset allocation strategy. This means this fund may hold higher portion of assets in bonds and short term cash.
The following top retirement income funds are chosen based on its long term track record. It also doesn’t have a sales load or transaction fee. You can buy this fund through your brokerage such as Scottrade, Fidelity, Vanguard, Schwab, JPMorgan, etc. I also provide the fund review below. Most of these funds are affordable among many investors due to low initial investment requirement.
The 6 Best No Load Retirement Income Balanced Mutual Funds for 2013 are:
- American Beacon Retire Income & Appreciation Inv (AANPX)
- Vanguard Target Retirement Income Inv (VTINX)
- American Century LIVESTRONG Inc Inv (ARTOX)
- T. Rowe Price Retirement Income (TRRIX)
- Fidelity Freedom Income (FFFAX)
- Vantagepoint Milestone Retirement Income (VPRRX)
This American Beacon Retirement Income and Appreciation fund objective is to provide income and capital appreciation. It uses its assets to purchase investment grade bonds, convertible and non-convertible securities, and stocks. The sub-advisors are Aerican Beacon Advisors, Inc and Calamos Advisors LLC. Its dividend yield is 2.32%. The annual expense ratio is 1.1%.
The fund’s assets are allocated as follow: fixed income (78.1%), convertible obligations (12.2%), equity (6.1%), and cash equivalent (3.6%). For the fixed income portion, it has weighted average maturity of 6.8 years. Morningstar ranks this balanced fund with 3 stars. It has a 5 years annualized return of 5.38%.
2. Vanguard Target Retirement Income (Ticker: VTINX)
The Vanguard Target Retirement Income fund invests majority of its assets in other Vanguard mutual funds based on an asset allocation strategy designed for retiree. Duane F. Kelly is the fund manager since 2003. This no load target date mutual fund has a yield of 2.53%. The total net assets are $8.5 billion. Its expense ratio is only 0.17% per year.
You can buy this gold rated retirement income fund with $1,000 initial investment. The fund has an investment style of large blend. As of June 2012, the top 5 holdings are Vanguard Total Bond Market II Index, Vanguard Total Stock Market Index, Vanguard Inflation-Protected Securities, Vanguard Total International Stock Index, and Vanguard Prime Money Market.
3. American Century LIVESTRONG Income (ARTOX)
The investment aim of American Century LIVESTRONG Income fund is to seek income and capital growth through investment in other American Century mutual funds. It has $372 million of total assets. It also has an above average expense ratio fee of 0.75%. It opens to new investors.
This best retirement income mutual fund has returned 4.18% over the past 1 year, 9.65% over the past 3 year, and 3.43% over the past 5 year. The year-to-date return is 3.78%.
4. T. Rowe Price Retirement Income (MUTF: TRRIX)
This T. Rowe Price Retirement Income fund is ranked with gold rating by Morningstar. It has $2.6 billion of total assets. It utilizes its assets to buy other T. Rowe Price stock and bond funds depending upon its asset allocation. The expense ratio is 0.56%. Its annual holding turnover rate is 12.5%.
This retirement income fund has an average 3 year return of 8.89%. As of June 2012, the top 5 sectors are technology, financial services, industrials, consumer cyclical, and energy. The top 3 funds in its portfolio are T Rowe Price Inflation Focused Bond (29.68%), T Rowe Price Equity Index 500 (24.33%), and T Rowe Price New Income (17.91%).
5. Fidelity Freedom Income (FFFAX)
This Fidelity Freedom Income fund objective is to achieve high income and capital growth. It utilizes its assets to purchase a mix of Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. The fund managers are Chris Sharpe and Andrew Dierdorf. The distribution yield is 1.59%. Its investment style is large growth. The fund’s CUSIP number is 31617R308.
This 3 star rated retirement income balanced fund has its 1 year best total return in 2009 with 16.12%. The fund has returned 7.16% over the past 3 year, and 4.04% over the past decade.
6. Vantagepoint Milestone Retirement Income (VPRRX)
The Vantagepoint Milestone Retirement Income fund has an expense ratio of 0.85%. The holding turnover rate is 19%. Its yield is 1.85%. This best balanced fund is managed by Lee Trenum, Wayne Wicker, and David J. Braverman.
As of June 2012, the 3 year beta risk is 0.50. The top 3 sectors are financial services, industrials, and technology.
Disclosure: No Position
|No||Fund Description||Ticker||Expenses||YTD Return %||1 Year Return %||3 Year Return %||5 Year Return %||10 Year Return %|
|1||American Beacon Retire Income & Appreciation||AANPX||Low||2.25%||3.03%||6.86%||5.38%||-|
|2||Vanguard Target Retirement Income||VTINX||Average||3.15%||5.30%||9.17%||4.93%||-|
|3||American Century LIVESTRONG Inc||ARTOX||Above Average||3.78%||4.18%||9.65%||3.43%||-|
|4||T. Rowe Price Retirement Income||TRRIX||Above Average||3.16%||1.56%||8.89%||3.13%||-|
|5||Fidelity Freedom Income||FFFAX||Low||2.43%||2.04%||7.16%||3.11%||4.04%|
|6||Vantagepoint Milestone Retirement Income||VPRRX||Below Average||2.36%||2.22%||6.98%||2.99%||-|