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3 Balanced Mutual Funds for a Smooth Ride

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3 Balanced Mutual Funds for a Smooth Ride

Bruce Fund

BruceFund185 3 Balanced Mutual Funds for a Smooth RideQuietly doing a fine job for shareholders, Bruce Fund (BRUFX) is a hidden gem in the mutual fund world.

Managed by the father-and-son team of Jeffrey Bruce and Robert Bruce, this mutual fund does no advertising and does not seek the spotlight. The fund has an asset base of just $391 million and is only available for purchase directly from the fund’s custodian.

No doubt, this restricted availability has limited asset growth, but this smallish asset base gives the managers much greater flexibility with investment choices. Most of the stock portion of this fund is comprised of mid-, small- and microcap names — including $3.3 billion Amerco (UHAL) as its No. 1 holding — though large-caps Allstate (ALL), Pfizer (PFE), Merck and International Business Machines (IBM) are among BRUFX’s higher weightings.

Bruce Fund is ranked in the top 1% of its Morningstar category over the past 10 years, gaining 13.7% per year. Currently the fund has a 48% allocation to stocks, 25% in bonds, 13% in cash and the rest among other assets.

A reasonable 0.78% expense ratio makes BRUFX even more compelling.

As of this writing, Bill Wysor was long FPACX.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/3-balanced-mutual-funds-for-a-smooth-ride/.

©2014 InvestorPlace Media, LLC

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