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Focus on 3 Large-Cap Value Mutual Funds for Good Returns
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Large-cap funds are better than small or mid-cap funds for risk-averse investors. These funds have exposure to large-cap stocks, with a long-term performance history and more stability than what mid or small-caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large-cap companies might be affected by a global downturn.
Meanwhile, investors who are looking for a bargain — stocks trading at a discount — are mostly interested in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield, should check the mutual fund yield as not all value funds comprise solely companies that use their earnings primarily to pay out dividend.
Fidelity Large Cap Value Enhanced Index seeks growth of capital. FLVEX invests a huge part of its assets in common stocks of companies included in the Russell 1000 Value Index. The fund invests directly in securities. Fidelity Large Cap Value Enhanced Index has returned 12% in the last one-year period.
As of April 2018, FLVEX held 226 issues, with 3.34% of its assets invested in JPMorgan Chase & Co.
Lord Abbett Calibrated Large Cap Value A invests a large chunk of its assets in equity securities of large-cap companies. LCAAX seeks a high level of returns. The fund primarily focuses on investing in those large-cap companies that are expected to be undervalued. Lord Abbett Calibrated Large Cap Value Ahas one-year annualized returns of 7.1%.
LCAAX has an expense ratio of 0.85% compared with a category average of 0.99%.
JPMorgan Large Cap Value A (OLVAX - Free Report) seeks appreciation of capital. OLVAX invests a major portion of its assets in securities, including common stocks, preferred stocks and debt instruments that can be converted to common stocks of large-cap companies. At the time of purchase, large-cap companies are defined as those that have market cap similar to those listed on the Russell 1000 Value Index. JPMorgan Large Cap Value A has returned 10.2% in the last one-year period.
Scott Blasdell is the fund manager of OLVAX since 2013.
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Focus on 3 Large-Cap Value Mutual Funds for Good Returns
Large-cap funds are better than small or mid-cap funds for risk-averse investors. These funds have exposure to large-cap stocks, with a long-term performance history and more stability than what mid or small-caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large-cap companies might be affected by a global downturn.
Meanwhile, investors who are looking for a bargain — stocks trading at a discount — are mostly interested in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield, should check the mutual fund yield as not all value funds comprise solely companies that use their earnings primarily to pay out dividend.
Below we share with you three top-ranked, large-cap value mutual funds. 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 large-cap value funds.
Fidelity Large Cap Value Enhanced Index seeks growth of capital. FLVEX invests a huge part of its assets in common stocks of companies included in the Russell 1000 Value Index. The fund invests directly in securities. Fidelity Large Cap Value Enhanced Index has returned 12% in the last one-year period.
As of April 2018, FLVEX held 226 issues, with 3.34% of its assets invested in JPMorgan Chase & Co.
Lord Abbett Calibrated Large Cap Value A invests a large chunk of its assets in equity securities of large-cap companies. LCAAX seeks a high level of returns. The fund primarily focuses on investing in those large-cap companies that are expected to be undervalued. Lord Abbett Calibrated Large Cap Value Ahas one-year annualized returns of 7.1%.
LCAAX has an expense ratio of 0.85% compared with a category average of 0.99%.
JPMorgan Large Cap Value A (OLVAX - Free Report) seeks appreciation of capital. OLVAX invests a major portion of its assets in securities, including common stocks, preferred stocks and debt instruments that can be converted to common stocks of large-cap companies. At the time of purchase, large-cap companies are defined as those that have market cap similar to those listed on the Russell 1000 Value Index. JPMorgan Large Cap Value A has returned 10.2% in the last one-year period.
Scott Blasdell is the fund manager of OLVAX since 2013.
To view the Zacks Rank and past performance of all large-cap value mutual funds, investors can click here to see the complete list of funds.
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