BlackRock Inc. is one of the world’s leading asset management firms offering a range of risk management, strategic advisor and enterprise investment system services. With about $7.8 trillion worth of assets under management (excluding money market assets), as of Sep 30, 2020, it caters to institutional, intermediary and individual investors.
Its offerings range from individual and institutional separate accounts to mutual funds and other pooled investment options. BlackRock aims to provide a wide range of investment solutions to strike a balance between risk and opportunities.
Furthermore, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Let’s consider the best performing mutual funds from BlackRock that should be on your radar in 2021.
BlackRock’s Performance in 2020
The fund family has a history of providing upbeat returns. The initial investment of the majority of BlackRock mutual funds ranges from $0 to $1,000. Further,
BlackRock Technology Opportunities Fund Service Shares (BSTSX) turned up as one of the best-performing mutual funds from the BlackRock family. The fund has posted solid gains over the past year.
BSTSX, which invests the majority of its assets in securities issued by U.S. and non-U.S. technology companies across all market capitalization ranges, has returned 79.9% in the past one-year period.
BlackRock invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the issuer invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) climbed 40.4% over the past year and remained the best-performing sector among the 11 S&P 500 sectors.
Awards and Recognitions
According to Forbes and JUST Capital, BlackRock has been named as one of America’s Most JUST Companies for 2021. The 2021 list of America’s Most JUST Companies celebrates those American companies that outperform their peers in the Russell 1000.
The list decided on how a company deals with burning issues like fair pay, ethical leadership, work-life balance, equal opportunity, environmental impact, as well as delivering return on investment to shareholders. Needless to say, Blackrock stood out in all of the aforementioned categories.
Furthermore, BlackRock won “Investor of the Year” in the Environmental Finance 2020 Bond Awards. These awards are meant to celebrate the green, social and sustainability bond deals as well as the leading companies that participate in it.
The company was also ranked fifth on Fortune Magazine’s Change the World list, which includes top 50 companies that are leading from the front in tackling the world’s most urgent problems.
3 Best Funds to Buy Now
Given such circumstances, we have highlighted three BlackRock mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more:
Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). BlackRock Technology Opportunities Fund Investor A Shares ( BGSAX Quick Quote BGSAX - Free Report) aims for long-term capital appreciation. The fund invests majority of its assets in equity securities of U.S. and foreign companies across all market capitalizations that have fast and sustainable growth potential from the development, advancement and implementation of science and technology.
This Zacks Sector-Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds,
please click here.
BGSAXhas one and three-year returns of 79.9% and 36%, respectively and an annual expense ratio of 1.18%, which is below the category average of 1.24%.
BlackRock International Fund of BlackRock Series, Inc. Investor A Shares ( MDILX Quick Quote MDILX - Free Report) aims for capital appreciation over the long term. The fund invests the majority of its assets in stocks of companies located outside the United States. MDILX invests a minimum of 75% of its total assets in global equity securities of any market capitalization. Such securities are selected for their above-average return potential.
This Non US-Equity product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 19.2% and 6.4%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds,
please click here.
The fund has an annual expense ratio of 0.90%, which is below the category average of 0.97%.
BlackRock Large Cap Focus Growth Fund Investor A Shares ( MDFOX Quick Quote MDFOX - Free Report) strives for long-term capital appreciation. This aggressive growth fund invests primarily in common stocks of 25 to 45 companies that fund management believes have strong earnings and revenue growth as well as capital appreciation potential. The fund invests the lion’s share of its assets in large cap equity securities and derivatives having similar economic characteristics to such securities.
This Large Cap Growth product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 40.2% and 23.1%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds,
please click here.
The fund has an annual expense ratio of 0.92%, which is below the category average of 1.04%.
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