Investor’s sentiment has improved due to various Federal Reserve friendly macroeconomic data that came in July. U.S. Federal Reserve Chairman Jerome Powell’s keynote speech at the annual Jackson Hole Economic Policy Symposium, along with improved inflation, advance GDP growth rate estimates and labor market reports suggest that the central bank will likely cut key interest rates in coming months.

Since the beginning of March 2022, the Fed increased the benchmark interest rate from 0.25% to 5.5% until July 2023 to tame inflation. During the last eight monetary policy meetings, the central bank kept interest rates unchanged in the range of 5.25-5.5%. Investors are expecting the Fed to start easing interest rates by September as inflation is close to its inflation target of 2%. However, incoming macroeconomic data in the coming months will determine the timing and magnitude of the rate cut.

Mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Vanguard mutual funds like BlackRock Natural Resources Trust Fund (MDGRX Quick QuoteMDGRX - Free Report) , BlackRock Large Cap Focus Value Fund (MDBAX Quick QuoteMDBAX - Free Report) and BlackRock Advantage Large Cap Growth Fund (BMCAX Quick QuoteBMCAX - Free Report) should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.

These funds have wide exposure in sectors such as industrial cyclical, energy, non-durable, technology, finance and retail, which are expected to perform well in the long term.

Why Invest in BlackRock Mutual Funds?

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.

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 Natural Resources Trust Fund invests most of its assets in equity securities of companies with substantial natural resource assets. MDGRX advisors generally invest in a variety of natural resource related sectors companies, such as energy, chemicals, oil, gas, paper, mining, steel or agricultural products.

Alastair Bishop has been the lead manager of MDGRX since March 31, 2017. Most of the fund’s exposure is in companies like Shell Plc (8.01%), Exxon Mobil (5.9%) and BP (5.2%) as of April 30, 2024.

MDGRX’s three-year and five-year annualized returns are almost 9.6% and 10.9%, respectively. MDGRX has an annual expense ratio of 1.17%.

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

BlackRock Large Cap Focus Value Fund 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 March 31, 2024.

MDBAX’s three-year and five-year annualized returns are almost 8.7% and 11.0%, respectively. MDBAX has an annual expense ratio of 0.79%.

BlackRock Advantage Large Cap Growth Fund 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 June 11, 2017. Most of the fund’s exposure was in companies like Microsoft (12.8%), Apple (10.1%) and NVIDIA (5.9%) as of May 31, 2024.

BMCAX’s three-year and five-year annualized returns are almost 7.5% and 16.1%, respectively. BMCAX has an annual expense ratio of 0.87%.

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