The most-awaited inflation report, the Consumer Price Index (CPI), published by the Bureau of Labor Statistics, saw a dip in monthly inflation for the first time in more than four years. Owing to cheaper gasoline and moderating rents, CPI for the month of June fell 0.1% monthly. On a yearly basis, CPI increased by 3%. After deviating from the downward trend since the beginning of 2024, inflation is inching close to the Federal Reserve’s desired target of 2%.

The labor market is also slowly cooling off in favor of Federal Reserves’ expectations. Unemployment is steadily ticking up, and job creation is slowing down. The nonfarm payrolls rose by 206,000 in June compared to the revised target of 218,000 in May, while the unemployment rate breached 4% for the first time in over two years in June.

Fed Chair Jerome Powell, after his two-day testimony in front of Congress, said that the central bank is not yet confident of cutting the overnight interest rate, which is currently in the range of 5.25-5.50%, the highest in 23 years. All eyes will be on the upcoming Federal Open Market Committee meeting on Jul 30-31. However, investors are expecting an interest rate cut in September, taking clues from the Fed chairman’s comments, favorable macroeconomic data, and the presidential election due in the fall.

Given the current volatile situation, BlackRock mutual funds can be the preferred choice for investors who wish to diversify their portfolio but lack the necessary expertise in managing their own funds. Blackrock, founded in New York in the year 1988, is one of the leading investments, advisory, and risk-management solutions companies. The fund house has a reputation as a trusted partner and has long-term financial success.

BlackRock was founded as a standalone investment management company that focuses on providing asset and risk-management services to its clients. It is the world's largest asset management company and in the first quarter of 2024, its assets under management hit a record high of $10.5 trillion. Its assets under management span various asset classes like equity, fixed income, cash management, alternative investment and real estate.

Blackrock has more than 19,000 employees in more than 38 countries. The company manages assets for clients in North and South America, Europe, Asia, Australia, the Middle East, and Africa. Its clients include corporate, public and pension plans for various governments, insurance companies, third-party mutual funds, endowments, foundations, charities, corporations, official institutions, sovereign wealth funds, banks, financial professionals, and individuals worldwide.

We have thus selected three Blackrock mutual funds that have not only preserved investors’ wealth but also generated excellent returns in the past. These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of less than 1%. The majority of their investments are in sectors such as technology, finance and retail, which are expected to perform well in the long term.

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).

BlackRock Advantage Large Cap Growth Fund (BMCAX Quick QuoteBMCAX - Free Report) invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives such as futures contracts or options that have similar economic characteristics. BMCAX advisors consider large-cap companies as those with market cap within the range of companies listed on the Russell 1000 Growth Index at the time of purchase.

Raffaele Savi has been the lead manager of BMCAX since Jun 11, 2017. Most of the fund’s exposure was in companies like Microsoft (13.1%), Apple (11.4%) and Amazon.com (5%) as of Feb 29, 2024.

BMCAX’s three-year and five-year annualized returns are almost 9.2% and 16.9%, respectively. BMCAX has an annual expense ratio of 0.87%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

BlackRock Sustainable Advantage Large-Cap (BIRAX Quick QuoteBIRAX - Free Report) fund invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics. BIRAX advisors generally invest in common stocks, preferred stocks and convertible securities.

Raffaele Savi has been the lead manager of BIRAX since May 31, 2020. Most of the fund’s exposure is in companies like Microsoft (7.7%), Apple (6.2%) and NVIDIA (4.7%) as of Feb 29, 2024.

BIRAX’s three-year and five-year annualized returns are almost 8.7% and 14.9%, respectively. BIRAX has an annual expense ratio of 0.73%.

BlackRock Large Cap Focus Value Fund (MDBAX Quick QuoteMDBAX - Free Report) seeks capital appreciation along with current income by investing most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MDBAX advisors primarily choose to invest in equity securities of undervalued companies.

Tony DeSpirito has been the lead manager of MDBAX since Nov 14, 2019. Most of the fund’s exposure is in companies like Citi Group (3.9%), Wells Fargo (3.8%) and Medtronic (2.9%) as of Mar 31, 2024.

MDBAX’s three-year and five-year annualized returns are almost 6.8% and 9.9%, respectively. MDBAXhas an annual expense ratio of 0.79%.

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