Investors looking for exposure to both value and growth stocks, while seeking returns at a lower level of risk, may consider large-cap blend mutual funds. Large-cap funds offer more stability than mid or small caps and are thus safer.
Generally, companies with a market capitalization of more than $10 billion are considered large caps. However, due to their significant international exposure, large-cap companies run the risk of being hit by global woes.
Blend funds, also called hybrid funds, owe their origin to the graphical representation of their equity style box. In addition to diversification, blend funds offer a great mix of growth and value investment.
Below, we share with you three large-cap blend mutual funds, viz., BNY Mellon Income Stock Fund MPISX, Fidelity Large Cap Stock Fund FLCSX and JPMorgan U.S. Research Enhanced Equity Fund JDEAX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy), as we expect these to outperform their peers in the future. Investors can click here to see the complete list of funds.
BNY Mellon Income Stock Fund invests most of its net assets, along with borrowings, if any, in dividend-paying stocks emphasizing value and growth characteristics. MPISX advisors prefer to invest in large-cap companies.
BNY Mellon Income Stock Fund has three-year annualized returns of 21.7%. As of the end of November 2022, MPISX had 53 issues and invested 4.01% of its net assets in Exxon Mobil.
Fidelity Large Cap Stock Fund invests most of its net assets in common stocks of domestic and foreign large market capitalization companies with market capitalization similar to that of the companies listed on the Russell 1000 Index or the S&P 500 Index at the time of purchase. FLCSX advisors choose to invest in either value or growth stocks or a blend of both, along with sound fundamentals factors like financial condition, industry position, market and economic conditions.
Fidelity Large Cap Stock Fund has three-year annualized returns of 18.5%. FLCSX has an expense ratio of 0.68% compared with the category average of 0.84%.
JPMorgan U.S. Research Enhanced Equity Fund seeks to provide consistently high total returns by investing most of its assets, along with borrowings, if any, in a broadly diversified portfolio of equity securities of large-cap and mid-cap U.S. companies listed on the S&P 500 Index. JDEAX generally invests in companies with risk characteristics similar to S&P 500 Index.
JPMorgan U.S. Research Enhanced Equity Fund has three-year annualized returns of 15.5%. Raffaele Zingone has been one of the fund managers of JDEAX since July 2002.
To view the Zacks Rank and the past performance of all Large-Cap Blend Mutual Funds, investors can click here to see the complete list of Large-Cap Blend Mutual Funds.
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