George Putnam Balanced Fund

Consistently balanced to pursue growth and income with lower risk

This classic balanced fund invests in stocks that represent Putnam's high-conviction research ideas and high-quality bonds to generate income and reduce volatility.

A consistent balance of 60% stocks and 40% bonds over time

The fund has pursued a classic balanced strategy since 1937 and continues to be managed by an experienced team.

This fund received a Overall Morningstar Rating out of 636 funds in the Allocation — 50% to 70% Equity category based on total return as of 07/31/20

A record of consistent returns and rankings

Total return performance as of 06/30/20

Performance (before sales charge)

Total return performance as of 06/30/20

Performance (before sales charge)

5-star Morningstar Ratings™ as of

Time period Funds in category Morningstar Rating
Overall 636
3 yrs. 636
5 yrs. 562
10 yrs. 411
Morningstar category: Allocation--50% to 70% Equity

High Lipper rankings as of 07/31/20

Time period Rank/Funds in category Percentile ranking
1 yr. 30/542 6%
3 yrs. 20/521 4%
5 yrs. 23/488 5%
10 yrs. 24/406 6%
Lipper category: BALANCED FUNDS

Experienced managers pursue a broad range of opportunities

“The fund's diversification and balanced approach are designed to moderate volatility for investors.”

—Kathryn B. Lakin, Director of Equity Research

In managing the stock portion of the portfolio, Kate Lakin works with a team of equity research analysts. The team pursues a risk-aware strategy and invests in stocks across all sectors that may have value or growth characteristics.

For the fund's fixed-income investments, Paul Scanlon and Emily Shanks assemble a mix of government and investment-grade bonds. Historically, government bonds have shown relatively low correlation with stocks, which can help to dampen the impact of stock market downturns on fund performance.

Kathryn B. Lakin
Portfolio Manager
Director of Equity Research

Kathryn B. Lakin, Portfolio Manager, Director of Equity Research

Paul D. Scanlon, CFA
Portfolio Manager
Co-Head of Fixed Income

Paul D. Scanlon, CFA, Co-Head of Fixed Income, Portfolio Manager

Emily E. Shanks
Portfolio Manager

Emily E. Shanks, Portfolio Manager

Better risk-adjusted returns than most peers

The Sharpe ratio (as of 06/30/20) compares a portfolio's return (minus the risk-free T-bill return) with its volatility, or standard deviation. George Putnam Balanced Fund has a higher Sharpe ratio than its category average over many periods.

Insights from our equity team

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The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.