Amid volatility, major U.S. indexes — the Dow, the S&P 500 and the tech-heavy NASDAQ — have delivered positive returns of 1.1%, 9.8% and 11.5%, respectively, over the year-to-date period. Major concerns for investors are the sticky inflation rate, which lingers above the Fed’s 2% target, and uncertainty over the first interest rate cut.

The reading of the Consumer Price Index, the most accepted gauge for inflation, increased 3.4% year over year. It rose 0.3% month over month, slightly below the consensus estimate of 0.4%. Also, the Producer Price Index reading of 0.5% came in above the consensus estimate of 0.3%, validating persistent inflationary pressure.

The CME Fedwatch Tool currently assigned a 56% probability that the Fed will cut the benchmark lending rate by 25 basis points in November and a 77.5% chance that it will be reduced by 25 basis points in December. However, the Fed can keep the interest rate high for longer to meet its ambitious inflation target. But a higher interest rate can impact corporate performance and, thereby, stock prices.

Thus, risk-averse investors interested in both growth and value investing may opt for large-cap blend mutual funds as their major holdingsto achieve their objective. While large-cap funds usually provide a safer option for risk-averse investors, when compared to small-cap and mid-cap funds, blend funds provide significant exposure to both growth and value stocks. Blend funds, also known as “hybrid funds,” aim for value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity-style box.

Meanwhile, large-cap blend funds have exposure to large-cap stocks, providing long-term performance history and assuring more stability than what mid or small caps offer. Generally, companies with a market capitalization of more than $10 billion are considered large-cap firms. However, due to their significant international exposure, large-cap companies might be affected during a global downturn.

We have thus selected five large-cap blend mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, and carry a low expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

MFS Blended Research Core Equity (MUEVX Quick QuoteMUEVX - Free Report) fund invests most of its net assets in equity securities. MUEVX advisors generally invest in securities that represent an ownership interest in a company or other issuer.

Matthew W. Krummell has been the lead manager of MUEVX since May 31, 2008. Most of the fund’s exposure is in companies like Microsoft (7.5%), Apple (6.7%) and Amazon.com (3.9%) as of Dec 31, 2023.

MUEVX’s three-year and five-year annualized returns are 9.8% and 14.1%, respectively. MUEVX has an annual expense ratio of 0.39%.

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

Principal Capital Appreciation (PCAQX Quick QuotePCAQX - Free Report) fund invests most of its net assets in equity securities, preferably in large market capitalization companies. PCAQX advisors choose to invest in companies that they believe are trading at a discount to their private market value have a competitive advantage, and have barriers to entry in their respective industries.

Daniel R. Coleman has been the lead manager of PCAQX since May 18, 2010. Most of the fund’s exposure is in companies like Microsoft (6.6%), Apple (5.6%) and Alphabet (3.5%) as of Jan 31, 2024.

PCAQX’s three-year and five-year annualized returns are 9.2% and 13.6%, respectively. PCAQX has an annual expense ratio of 0.70%.

Northern Large Cap Core (NOLCX Quick QuoteNOLCX - Free Report) fund invests most of its net assets in a broadly diversified portfolio of domestic and foreign large-cap companies that are traded in the United States. NOLCX advisors consider large-cap companies as those with market capital within the range of the companies listed on the Russell 1000 Index.

Michael R. Hunstad has been the lead manager of NOLCX since Jul 30, 2019. Most of the fund’s exposure is in companies like Apple (7.6%), Microsoft (7.6%) and Alphabet (4.5%) as of Dec 31, 2023.

NOLCX’s three-year and five-year annualized returns are 9.2% and 12.9%, respectively. NOLCX has an annual expense ratio of 0.45%.

T. Rowe Price U.S. Equity Research Fund (PRCOX Quick QuotePRCOX - Free Report) invests most of its net assets in a portfolio of stocks where the weight of each sector and industry is approximately the same as in the S&P 500 Index. PRCOX advisors prefer to invest in large-capitalization domestic companies but can also invest in foreign issues with a similar objective.

Jason B. Polun has been the lead manager of PRCOX since Dec 31, 2014. Most of the fund’s exposure is in companies like Microsoft (7.2%), Apple (6.8%), and Amazon.com (3.6%) as of Dec 31, 2023.

PRCOX’s three-year and five-year annualized returns are 9% and 14%, respectively. PRCOX has an annual expense ratio of 0.44%.

Fidelity Fund (FFDKX Quick QuoteFFDKX - Free Report) invests most of its net assets in common stocks of domestic and foreign companies with either growth or value or both characteristics. FFDKX advisors may also invest a portion of assets in bonds, including lower-quality debt securities or junk bonds.

Nidhi Gupta has been the lead manager of FFDKX since May 21, 2024. Most of the fund’s exposure is in companies like Microsoft (11.5%), Apple (9.8%) and Alphabet (8.6%) as of Dec 31, 2024.

FFDKX’s three-year and five-year annualized returns are 8.6% and 15.3%, respectively. FFDKX has an annual expense ratio of 0.37%.

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>