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 cap. 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 top-rated large-cap blend mutual funds, viz. MainStay WMC Value Fund MUBFX, JPMorgan U.S. Research Enhanced Equity Fund Class A JDEAX, and Fidelity Advisor Diversified Stock Fund FDESX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. Investors can click here to see the complete list of funds.
MainStay WMC Value Fund invests most of its net assets in equity securities issued by companies irrespective of their market capitalization but preferably in large-cap companies. MUBFX also invests in securities issued by foreign companies, including emerging markets.
MainStay WMC Value Fund has three-year annualized returns of 14.7%. As of the end of April 2022, MUBFX has 64 issues and invested 3.82% of its net assets in UnitedHealth Group Incorporated.
JPMorgan U.S. Research Enhanced Equity Fund Class A seeks total return from a diversified portfolio of equity securities with a risk profile similar to Standard and Poor’s 500 Composite Stock Price Index (S&P 500 Index). JDEAX invests most of its assets along with borrowings, if any, in common stocks of both large-cap and mid-cap U.S. companies, which are primarily part of the S&P 500 Index.
JPMorgan U.S. Research Enhanced Equity Fund Class A has three-year annualized returns of 14.6%. JDEAX has an expense ratio of 0.60% compared with the category average of 0.84%.
Fidelity Advisor Diversified Stock Fund invests most of its net assets in the common stock of both foreign and domestic issuers that have growth or value or both characteristics. FDESX advisors use fundamental analysis like financial condition, industry position, as well as market and economic conditions to select investments
Fidelity Advisor Diversified Stock Fund has three-year annualized returns of 14.6%. Daniel E. Kelley has been the fund manager of FDESX since April 2017.
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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