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3 Large-Cap Value Funds to Make Your Portfolio Shine
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Large-cap funds are considered prudent choices for risk-averse investors when compared to their small and mid-cap counterparts. These funds have exposure to large-cap stocks, with a long-term performance history and offer more stability than mid or small caps. 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.
Investors looking for a bargain, i.e., 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 dividends. 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 value funds for yield should check the mutual fund yield as not all value funds comprise companies that primarily use their earnings to pay out dividends.
Principal Equity Income Fund Class A (PQIAX - Free Report) aims for current income along with long-term growth of income and capital. The fund invests majority of its assets in dividend-paying equity securities at the time of purchase. The fund manager focuses on large and medium market capitalizations companies. PQIAX has returned 5.2% over the past three years.
David W. Simpson is one of the fund managers of PQIAX since 2008.
T. Rowe Price Value Fund (TRVLX - Free Report) aims for long-term capital appreciation. The fund invests in common stocks of companies that are believed to be undervalued but typically focuses its investments on large-cap stocks. TRVLX has returned 3.8% over the past three years.
TRVLXhas an expense ratio of 0.78% compared with the category average of 0.99%.
Fidelity Value Discovery K6 Fund (FDVKX - Free Report) aims for capital appreciation. The fund invests its assets in common stocks of companies that the fund manager believes are undervalued in the marketplace in relation to factors such as assets, sales, earnings, growth potential, or cash flow, or in relation to securities. FDVKX has returned 2.4% over the past three years.
As of September 2020, FDVKX held 118 issues, with 4.5% of its assets invested in Berkshire Hathaway Inc Class B.
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3 Large-Cap Value Funds to Make Your Portfolio Shine
Large-cap funds are considered prudent choices for risk-averse investors when compared to their small and mid-cap counterparts. These funds have exposure to large-cap stocks, with a long-term performance history and offer more stability than mid or small caps. 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.
Investors looking for a bargain, i.e., 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 dividends. 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 value funds for yield should check the mutual fund yield as not all value funds comprise companies that primarily use their earnings to pay out dividends.
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 peers in the future. Investors can click here to see the complete list of large-cap value funds.
Principal Equity Income Fund Class A (PQIAX - Free Report) aims for current income along with long-term growth of income and capital. The fund invests majority of its assets in dividend-paying equity securities at the time of purchase. The fund manager focuses on large and medium market capitalizations companies. PQIAX has returned 5.2% over the past three years.
David W. Simpson is one of the fund managers of PQIAX since 2008.
T. Rowe Price Value Fund (TRVLX - Free Report) aims for long-term capital appreciation. The fund invests in common stocks of companies that are believed to be undervalued but typically focuses its investments on large-cap stocks. TRVLX has returned 3.8% over the past three years.
TRVLXhas an expense ratio of 0.78% compared with the category average of 0.99%.
Fidelity Value Discovery K6 Fund (FDVKX - Free Report) aims for capital appreciation. The fund invests its assets in common stocks of companies that the fund manager believes are undervalued in the marketplace in relation to factors such as assets, sales, earnings, growth potential, or cash flow, or in relation to securities. FDVKX has returned 2.4% over the past three years.
As of September 2020, FDVKX held 118 issues, with 4.5% of its assets invested in Berkshire Hathaway Inc Class B.
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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