Investors looking for bargain, i.e., stocks at a discount, are mostly interested in investing in value stocks. Value stocks are stocks that tend to trade at a price that is lower than its fundamentals (i.e. earnings, book value, Debt-Equity). It is common for some investors to invest in value funds for the income or yield. However, not all value funds are comprised solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund’s shares. Meanwhile, large cap funds usually provide a safer option for risk-averse investors, when compared to small-cap and mid cap funds. These funds have exposure to large cap stocks, providing long-term performance history and assuring more stability than what mid cap or small caps offer.
Below we will share with you 5 best rated large cap value mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all large cap value funds, investors can click here to see the complete list of funds.
Fidelity Value Discovery (FVDFX - Free Report) seeks capital growth over the long run. FVDFX predominantly invests in companies that are believed to be undervalued depending on factors including sales, earnings, growth potential and cash flow. FVDFX focuses on acquiring common stocks of companies throughout the globe. The Fidelity Value Discovery fund returned 9.1% in the last one year.
FVDFX has an expense ratio of 0.80% as compared to category average of 1.12%.
MFS Value A (MEIAX - Free Report) generally invests in equity securities including common stocks, securities of REITs and convertible securities. Though MEIAX primarily invests in value companies having large capitalizations, MEIAX may also invest in small and mid cap companies. The MFS Value A fund returned 8.7% in last one year.
As of April 2015, MEIAX held 94 issues with 4.39% of its assets invested in JPMorgan Chase & Co.
Nuveen Large-Cap Value A (NNGAX - Free Report) seeks long-term capital growth. NNGAX invests a large chunk of its assets in large cap companies having market cap sizes within the universe of the Russell 1000 Index. NNGAX primarily invests in undervalued companies. The Nuveen Large-Cap Value A fund returned 7.8% in last one year.
Robert C. Doll is the fund manager and has managed NNGAX since 2013.
Northern Income Equity (NOIEX - Free Report) invests a major portion of its assets in securities companies that are believed to have high income yielding potential. These equity securities include common and preferred stocks that are expected to pay dividend. NOIEX mainly invest in large cap companies. NOIEX may also invest not more than one-fifth of its assets in fixed income securities. The Northern Income Equity fund returned 4.9% in last one year.
As of March 2015, NOIEX held 62 issues with 4.72% of its assets invested in Wells Fargo & Co.
VALIC Company I Core Equity (VCCEX - Free Report) seeks capital appreciation over the long-term. VCCEX invests majority of its assets in common stocks of large cap companies. VCCEX may also lend securities to broker-dealers and other institutions given that the value of lend securities will be below 30% of its assets. The VALIC Company I Core Equity fund returned 9.3% in last one year.
VCCEX has an expense ratio of 0.80% as compared to category average of 1.12%.
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.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.