14 important things you should know about American Funds BALCX mutual fund

Updated: June 28, 2020
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Before we start: if you’re looking for BALCX “stock” price, you can quickly find it out by visiting Finny and typing "BALCX quote". If you’re looking for a quick scoop on BALCX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "BALCX". You’ll get all this info in one place.

Are you looking to buy or sell BALCX? Or perhaps you’re looking for BALCX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this BALCX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: BALCX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: BALCX buy or sell; the pros and cons of investing in BALCX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to BALCX.

And here is the list of questions we’ll answer:

  1. Describe American Balanced Fund; Class C Shares (BALCX).
  2. What are BALCX holdings?
  3. What is BALCX performance? What are BALCX historical returns?
  4. How many up and down years did BALCX have historically?
  5. What is BALCX dividend yield?
  6. What is BALCX minimum initial investment amount?
  7. What is BALCX expense ratio?
  8. Does BALCX have any sales loads or 12b-1 distribution expenses?
  9. What is BALCX tax efficiency (tax-cost ratio)?
  10. What is BALCX beta? How would you assess BALCX risk?
  11. What is BALCX Sharpe ratio?
  12. What is BALCX Finny Score? BALCX buy or sell?
  13. What are the pros of investing in BALCX? What are BALCX buy reasons?
  14. What are the cons of investing in BALCX? What are BALCX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Balanced Fund; Class C Shares (BALCX).

The Fund seeks to provide conservation of capital, current income, and long-term growth of both capital and income. The Fund invests in a broad range of securities, including common stocks and investment-grade bonds. The Fund also invests in securities issued and guaranteed by the U.S. government.

2. What are BALCX top holdings?

BALCX has 182 stock holdings and 1,620 bond holdings.

The top 10 holdings represent 19.16% of total assets. Here are the top holdings:

Name Symbol % Assets
Microsoft Corp MSFT 3.96%
UnitedHealth Group Inc UNH 2.81%
Philip Morris International Inc PM 1.97%
Taiwan Semiconductor Manufacturing Co Ltd ADR TSM.TW 1.87%
Berkshire Hathaway Inc A BRK.A 1.78%
Broadcom Inc AVGO 1.59%
Amazon.com Inc AMZN 1.47%
JPMorgan Chase & Co JPM 1.30%
Pfizer Inc PFE 1.24%
Cigna Corp CI 1.17%

3. What is BALCX performance? What are BALCX historical returns?

BALCX has generated the following returns:

  • 1-month return is 2.57%;
  • 3-month return is -7.53%;
  • 1-year return is 3.63%;
  • 3-year return is 5.68%;
  • 5-year return is 5.77%;
  • 10-year return is 8.34%;
  • 15-year return is 6.27%.

4. How many up and down years did BALCX have historically?

In the last 10 years, BALCX had 9 up years and 1 down year.

5. What is BALCX dividend yield?

BALCX yield is 1.2%.

6. What is BALCX minimum initial investment amount?

BALCX minimum initial investment amount is $1.00K.

7. What is BALCX expense ratio?

BALCX expense ratio is 1.36%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does BALCX have any sales loads or 12b-1 distribution expenses?

BALCX 12b-1 distribution fee is 1. BALCX front-end sales load is 0. BALCX back-end sales load is 1.

9. What is BALCX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1%;
  • 3-year ax cost ratio is 1.14%.

10. What is BALCX beta? How would you assess BALCX risk?

  • 3-year beta is 0.95;
  • 5-year beta is 0.96;
  • 10-year beta is 1.00;
  • 15-year beta is 1.00.

11. What is BALCX Sharpe ratio?

  • 3-year Sharpe ratio is 0.24;
  • 5-year Sharpe ratio is 0.44;
  • 10-year Sharpe ratio is 0.82;
  • 15-year Sharpe ratio is 0.49.

Analysis

12. What is BALCX Finny Score? BALCX buy or sell?

BALCX Finny Score is 67. Our quantitative analysis shows 4 reasons to buy BALCX and 2 reasons to sell it, resulting in the Finny Score of 67.

13. What are the pros of investing in BALCX? What are BALCX buy reasons?

The following are BALCX strengths from our perspective:

  • BALCX 3-year return is 5.68%, which is higher than the 3-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 4.54%.
  • BALCX 5-year return is 5.77%, which is higher than the 5-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 4.51%.
  • BALCX 10-year return is 8.34%, which is higher than the 10-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 6.93%.
  • BALCX 15-year return is 6.27%, which is higher than the 15-year return of the benchmark index (Morningstar Moderate Target Risk TR USD), 6.15%.

14. What are the cons of investing in BALCX? What are BALCX negatives?

The following are BALCX weaknesses from our perspective:

  • Warning: this fund has a 12b1 and deferred sales fee. The maximum 12b1 fee is 1%, while the maximum deferred sales load is 1%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Deferred sales load is a back-end sales charge and is imposed when an investor redeems shares.
  • BALCX expense ratio is 1.36%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the BALCX review, we covered BALCX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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