Today we are featuring top-performing "Flexible" balanced mutual funds, which can invest in stocks, bonds, or cash to any degree in search of income or total return.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Flexible Balanced Funds.

3 Great Picks

Principal SAM Flexible Income A (SAUPX) seeks to provide a high level of total return (consisting of reinvestment of income with some capital appreciation).

The fund operates as a fund of funds and invests principally in underlying funds. It may invest up to 40% of assets in any single fixed-income fund as well as cash equivalents.

Michael D. Meighan has managed the fund since March 2003. The fund has topped total returns of its benchmark index in the last 1-, 3-and 5-year periods.

First American Strategy Conservative Allocation A (FSFIX) was incepted September 2001. The investment seeks

Today we are featuring top-performing "Flexible" balanced mutual funds, which primarily seek income or total return through investment in stocks, bonds, or cash to any extent.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Flexible Balanced Funds.3 Solid Picks

Franklin Real Return A (FRRAX) seeks to achieve total return that exceeds the rate of inflation over an economic cycle.

The fund generally invests a substantial portion of its assets in inflation-protected securities. It also has the flexibility to invest in other sectors of the market to increase real return (total return less inflation) potential and offer greater diversification.

T. Anthony Coffey has been lead manager at the fund since its inception in November 2004. The fund has an expense ratio of 0.90%.

Berwyn Income (BERIX) was incepted in September

Today we are featuring top-performing "Flexible" balanced mutual funds, which primarily seek income or total return and can invest in stocks, bonds, or cash without limitation.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Flexible Balanced Funds.

3 Fine Samples

Changing Parameters (CPMPX) seeks total return. The fund invests primarily in futures contracts, options on futures contracts, swap contracts, exchange-traded funds ("ETFs") and U.S. Treasury instruments.

The fund is non-diversified. It typically invests in U.S. Treasuries with maturities of any duration, or their derivatives, and the allocation of its investments between equity and fixed income market segments may vary without limitation.

Robert Levenson has been lead manager at the fund since October 2006. The fund has outperformed the total returns of its benchmark index in the last 1-year period.

Gabelli ABC (GABCX) was incepted