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2 Davis Mutual Funds for Spectacular Returns

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Davis Advisors is an independent investment management company established in 1969. It focuses on equities and specializes in long-term investment strategies. Davis Advisors provides mutual funds, SMAs, ETFs and variable accounts.

The company’s methodical approach aims to exceed market benchmarks through active management. It conducts research on company fundamentals with a focus on growth prospects and competitive strengths. With a legacy of more than five decades of client-centered service, Davis Advisors offers wealth management solutions.

Investing in Davis mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen two Davis mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided a comparatively strong performance along with lower fees.

Davis Appreciation & Income Fund (DCSYX - Free Report) invests in a diversified portfolio comprising common stock, convertible securities, preferred stock and bonds. DCSYX advisors also choose to invest in companies of all sizes, regardless of their market capitalization, as well as in securities issued by both domestic and foreign companies.

Creston A. King has been the lead manager of DCSYX since Jun 30, 2016. Most of the fund’s holdings were in companies like Berkshire Hathaway Inc. (7.9%), Applied Materials, Inc. (6.4%) and Capital One Financial Corp (5.8%) as of Dec 31, 2023.

DCSYX’s 3-year and 5-year annualized returns are 8.4% and 11%, respectively. Its net expense ratio is 0.68%. DCSYX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Davis Financial (RPFGX - Free Report) invests in securities issued by companies primarily engaged in the financial services sector with a principal focus on common stocks, including indirect holdings through depositary receipts.

Christopher Cullom Davis has been the lead manager of RPFGX since Dec 31, 2013. Most of the fund's holdings were in companies like Capital One Financial Corp (10.8%), Wells Fargo & Co (8.4%) and JPMorgan Chase & Co. (7.2%) as of Dec 31, 2023.

RPFGX's 3-year and 5-year annualized returns are 9.2% and 11.2%, respectively. Its net expense ratio is 0.95%. RPFGX has a Zacks Mutual Fund Rank #2.

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