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3 Large-Cap Blend Mutual Funds for Generous Returns

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Large-cap blend mutual funds seek to offer value appreciation through capital gains with relatively less volatility by investing in both value and growth stocks. Blend funds, also known as “hybrid funds,” owe their origin to a graphical representation of a fund’s equity style box. In addition to diversification, blend funds are great for investors seeking a mix of growth and value.

Meanwhile, significant exposure to large-cap stocks makes these blend funds safer for risk-averse investors than small-cap and mid-cap funds. Companies with a market capitalization above $10 billion are generally considered large-cap firms. Also, these funds have a long-term performance history and assure more stability than mid or small-caps.

Below, we share with you three top-ranked large-cap blend mutual funds, namely Fidelity Growth & Income fund (FGRIX - Free Report) , Nicholas (NICSX - Free Report) and Vanguard Dividend Growth Inv (VDIGX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Fidelity Growth & Income fund seeks dividend income along with capital appreciation by investing the majority of its net assets in domestic and foreign issues. FGRIX advisors invest in bonds, including low-quality debt securities, otherwise known as junk bonds, as well as stocks, which show prospects for future income and capital appreciation. The fund has returned 14.7% over the past three years.

As of April 2023, FGRIX held 202 issues, with 8.1% of its assets invested in Exxon Mobil.

Nicholas primarily invests in common stocks of companies believed to have growth potential. In determining the size of the companies, NICSX advisors consider annual sales volume and market capitalization as guidance. The fund has returned 11.6% over the past three years.

NICSX has an expense ratio of 0.71% compared with the category average of 0.99%.

Vanguard Dividend Growth Inv invests primarily in stocks that tend to offer current dividends. VDIGX focuses on large-cap companies that have prospects for long-term total returns as a result of increased earnings and dividends over time. The fund has returned 9.7% over the past three years.

Peter C. Fisher has been one of the fund managers of VDIGX since June 2022.

To view the Zacks Rank and the past performance of all large-cap blend mutual funds, investors can click here to see the complete list of large-cap blend mutual funds.

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