There are plenty of choices in the Large Cap Blend category, but where should you start your research? Well, one fund that might be worth investigating is Diamond Hill Large Cap Fund A (DHLAX Quick QuoteDHLAX - Free Report) . DHLAX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

DHLAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.

History of Fund/Manager

Diamond Hill is based in Columbus, OH, and is the manager of DHLAX. The Diamond Hill Large Cap Fund A made its debut in July of 2001 and DHLAX has managed to accumulate roughly $1.24 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.37%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -0.64%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 10.75%, the standard deviation of DHLAX over the past three years is 17.62%. The fund's standard deviation over the past 5 years is 15.98% compared to the category average of 10.54%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. DHLAX lost 48.72% in the most recent bear market and outperformed its peer group by 1%. This could mean that the fund is a better choice than comparable funds during a bear market.

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DHLAX has a 5-year beta of 1.13, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. DHLAX's 5-year performance has produced a negative alpha of -2.63, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.

Right now, 99.1% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $178.85 billion. The fund has the heaviest exposure to the following market sectors:

1. Finance
2. Technology
3. Non-Durable

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DHLAX is a load fund. It has an expense ratio of 0.97% compared to the category average of 1.01%. Looking at the fund from a cost perspective, DHLAX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, Diamond Hill Large Cap Fund A ( DHLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Diamond Hill Large Cap Fund A ( DHLAX ) looks like a good potential choice for investors right now.

This could just be the start of your research on DHLAXin the Large Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.