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3 Top BlackRock Mutual Funds Worth a Buy for Better Returns

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BlackRock is an American multinational investment company based in New York City. Founded in 1988, Blackrock has accumulated assets of about $9.1 trillion, according to the most recently available information.

The funds are managed by experienced portfolio managers who leverage in-depth research and analysis to identify investment opportunities and construct portfolios that aim to generate long-term capital appreciation. With its solid track record, diversified portfolio, and experienced team of experts, BlackRock offers a reliable avenue for safeguarding capital and generating long-term returns even amidst market volatility.

Furthermore, BlackRock's diverse portfolio provides exposure to a wide range of asset classes, including equities, fixed-income, real estate, and alternative investments. This diversification acts as a buffer against downturns in any particular sector, spreading the risk and minimizing the impact of economic recessions.

BlackRock's size and global presence also afford it significant advantages during a recession. The firm's extensive network and deep industry connections provide access to a vast pool of information, allowing it to make well-informed investment decisions. Additionally, BlackRock's scale enables it to negotiate favorable terms with portfolio companies and exercise considerable influence, leading to enhanced returns for investors. In times of economic downturn, this strength and influence can prove invaluable in mitigating losses and maximizing returns.

Moreover, BlackRock's long-term investment approach aligns well with the needs of investors during a recession. Instead of succumbing to short-term market fluctuations, BlackRock focuses on identifying quality investments with solid fundamentals and growth potential. This approach fosters stability and resilience in the face of market volatility, allowing investors to weather the storm and potentially benefit from the recovery that follows.

Lastly, BlackRock's commitment to responsible investing and sustainability further enhances its appeal during a recession. The firm integrates environmental, social, and governance (ESG) factors into its investment decision-making process, aiming to generate long-term value while considering the impact on society and the environment. This forward-thinking approach positions BlackRock well for the future, as companies with strong ESG practices tend to exhibit greater resilience during economic downturns.

BlackRock's strong performance history, diversified portfolio, expertise, global presence, long-term investment approach, and commitment to responsible investing make it an excellent choice for investors seeking stability and growth during a recession.

Investing in low-cost Blackrock 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 lower transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three Blackrock 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 comparatively strong performance along with lower fees.

BlackRock Commodity Strategies Portfolio (BCSAX - Free Report) employs a dual investment strategy. The first strategy involves commodity-linked derivatives to meet coverage and collateral requirements associated with these investments. Second, equity investments are made in commodity-related companies.

Hannah Johnson has been the lead manager of BCSAX since Oct 1, 2016. Most of the fund’s holdings were in companies like Exxon Mobil Corp (3.4%), Shell Plc Adr (1.9%), and Bhp Group Ltd (1.5%) as of Feb 28, 2023.

BCSAX’s 3-year and 5-year annualized returns are 15.4% and 4.5%, respectively. Its net expense ratio is 0.97% compared to the category average of 1.11%. BCSAX has a Zacks Mutual Fund Rank #1.

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

BlackRock Exchange Portfolio BlackRock (STSEX - Free Report) aims to minimize the realization of capital gains.It invests largely in a diversified and supervised portfolio of common stocks or convertible securities, with the main focus being growth potential over a number of years.

Phil Ruvinsky has been the lead manager of STSEX since Feb 1, 2020. Most of the fund’s holdings were in companies like Microsoft Corp (30.2%), Berkshire Hathaway Inc (11.3%) and General Dynamics Corp (8.7%) as of Mar 31, 2023.

STSEX’s 3-year and 5-year returns are 15.8% and 13.1%, respectively. The annual expense ratio is 0.77% compared to the category average of 0.84%. STSEX has a Zacks Mutual Fund Rank #1.

BlackRock Sustainable Advantage Large Cap Core Fund (BIRAX - Free Report) invests most of its assets in large-cap equity securities and derivatives. Equity securities include common stock, preferred stock, and convertible securities. 

Raffaele Savi has been the lead manager of BIRAX since Jun1, 2020. Most of the fund’s holdings were in companies like Microsoft Corp (5.7%), Apple Inc (5.5%), and Alphabet Inc (2.5%) as of Feb 28, 2023.

BIRAX’s 3-year and 5-year returns are 12.5% and 10.2%, respectively. The annual expense ratio is 0.73% compared to the category average of 0.84%. BIRAX has a Zacks Mutual Fund Rank #1.

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