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3 Large-Cap Blend Mutual Funds to Add to Your Portfolio
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A favorable macroeconomic landscape, along with U.S. Federal Reserve Chairman Jerome Powell’s keynote speech at the annual Jackson Hole Economic Policy Symposium, has reinstated investors’ confidence. Fed-friendly data for inflation, advance GDP growth rate estimates and labor market reports for the month of July suggest that the central bank will likely end the high-interest rate regime in the coming months.
Investors are expecting the Fed to start easing interest rates by September. The timing of the rate cut is still dependent on incoming macroeconomic data.
Thus, risk-averse investors interested in both growth and value investing may opt for large-cap blend mutual funds like MFS Blended Research Core Equity (MUEVX - Free Report) , Fidelity Growth & Income (FGRIX - Free Report) and Northern Large Cap Core (NOLCX - Free Report) as their major holdings to achieve their objective.
Why Invest in Large-Cap Blend Mutual Funds?
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 as large-cap firms. However, due to their significant international exposure, large-cap companies might be affected during a global downturn.
We have thus selected three 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 compared to the category average of 0.84%. 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 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 June 1, 2008. Most of the fund’s exposure was in companies like Microsoft (7.3%), Apple (6.4%) and Apple (5.2%) as of March 31, 2024.
MUEVX’s three-year and five-year annualized returns are 11.7% and 16.1%, 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.
Fidelity Growth & Income fund invests most of its net assets in common stocks of domestic and foreign companies that pay current dividends and have prospects for future income or capital appreciation. FGRIX advisors also invest in bonds, including lower-quality debt securities or junk bonds.
Matthew W. Fruhan has been the lead manager of FGRIX since Feb. 4, 2011. Most of the fund’s exposure is in companies like Microsoft (8.5%), Exxon Mobil (7.6%) and Wells Fargo (6.0%) as of April 30, 2024.
FGRIX’s three-year and five-year annualized returns are 11.5% and 14.6%, respectively. FGRIX has an annual expense ratio of 0.57%.
Northern Large Cap Core 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.
Reed A. LeMar has been the lead manager of NOLCX since July 31, 2024. Most of the fund’s exposure is in companies like Microsoft (7.7%), Apple (6.3%), and Alphabet (4.4%) as of March 31, 2024.
NOLCX’s three-year and five-year annualized returns are 10.9% and 15%, respectively. NOLCX has an annual expense ratio of 0.45%.
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3 Large-Cap Blend Mutual Funds to Add to Your Portfolio
A favorable macroeconomic landscape, along with U.S. Federal Reserve Chairman Jerome Powell’s keynote speech at the annual Jackson Hole Economic Policy Symposium, has reinstated investors’ confidence. Fed-friendly data for inflation, advance GDP growth rate estimates and labor market reports for the month of July suggest that the central bank will likely end the high-interest rate regime in the coming months.
Investors are expecting the Fed to start easing interest rates by September. The timing of the rate cut is still dependent on incoming macroeconomic data.
Thus, risk-averse investors interested in both growth and value investing may opt for large-cap blend mutual funds like MFS Blended Research Core Equity (MUEVX - Free Report) , Fidelity Growth & Income (FGRIX - Free Report) and Northern Large Cap Core (NOLCX - Free Report) as their major holdings to achieve their objective.
Why Invest in Large-Cap Blend Mutual Funds?
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 as large-cap firms. However, due to their significant international exposure, large-cap companies might be affected during a global downturn.
We have thus selected three 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 compared to the category average of 0.84%. 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 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 June 1, 2008. Most of the fund’s exposure was in companies like Microsoft (7.3%), Apple (6.4%) and Apple (5.2%) as of March 31, 2024.
MUEVX’s three-year and five-year annualized returns are 11.7% and 16.1%, 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.
Fidelity Growth & Income fund invests most of its net assets in common stocks of domestic and foreign companies that pay current dividends and have prospects for future income or capital appreciation. FGRIX advisors also invest in bonds, including lower-quality debt securities or junk bonds.
Matthew W. Fruhan has been the lead manager of FGRIX since Feb. 4, 2011. Most of the fund’s exposure is in companies like Microsoft (8.5%), Exxon Mobil (7.6%) and Wells Fargo (6.0%) as of April 30, 2024.
FGRIX’s three-year and five-year annualized returns are 11.5% and 14.6%, respectively. FGRIX has an annual expense ratio of 0.57%.
Northern Large Cap Core 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.
Reed A. LeMar has been the lead manager of NOLCX since July 31, 2024. Most of the fund’s exposure is in companies like Microsoft (7.7%), Apple (6.3%), and Alphabet (4.4%) as of March 31, 2024.
NOLCX’s three-year and five-year annualized returns are 10.9% and 15%, respectively. NOLCX has an annual expense ratio of 0.45%.
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 >>