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3 Large-Cap Value Mutual Funds for Spectacular Returns
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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 caps. 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 primarily interested in value funds. They 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. Investors, however, 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.
Putnam Large Cap Value Fund Class A (PEYAX - Free Report) aims for capital growth and current income. The fund invests in common stocks of midsize and large U.S. companies, focusing on value stocks that offer the potential for capital growth, current income, or both. PEYAX carries a Zacks Mutual Fund Rank #1 and has returned 13.2% over the past three years.
Darren A. Jaroch is one of the fund managers of PEYAX since 2012.
Westwood Quality Value Fund A Class (WWLAX - Free Report) aims for long-term capital appreciation. The fund primarily invests assets in common stocks and other equity securities of large-capitalization companies. It normally invests in equity securities of U.S. companies, but may also invest in equity securities of foreign companies as well as American Depositary Receipts. WWLAX carries a Zacks Mutual Fund Rank #2 and has returned 10.7% over the past three years.
WWLAX has an expense ratio of 0.90% compared with the category average of 0.94%.
Fidelity Equity-Income Fund (FEQIX - Free Report) aims to provide reasonable income along with the potential for capital appreciation. The fund invests most of its assets in income-producing equity securities, which tend to lead to investments in large-cap value stocks. FEQIX carries a Zacks Mutual Fund Rank #1 and has returned 13.2% over the past three years.
As of the end of July 2021, FEQIX held 126 issues, with 3.33% of its assets invested in JPMorgan Chase & Co.
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3 Large-Cap Value Mutual Funds for Spectacular Returns
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 caps. 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 primarily interested in value funds. They 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. Investors, however, 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 a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of large-cap value funds.
Putnam Large Cap Value Fund Class A (PEYAX - Free Report) aims for capital growth and current income. The fund invests in common stocks of midsize and large U.S. companies, focusing on value stocks that offer the potential for capital growth, current income, or both. PEYAX carries a Zacks Mutual Fund Rank #1 and has returned 13.2% over the past three years.
Darren A. Jaroch is one of the fund managers of PEYAX since 2012.
Westwood Quality Value Fund A Class (WWLAX - Free Report) aims for long-term capital appreciation. The fund primarily invests assets in common stocks and other equity securities of large-capitalization companies. It normally invests in equity securities of U.S. companies, but may also invest in equity securities of foreign companies as well as American Depositary Receipts. WWLAX carries a Zacks Mutual Fund Rank #2 and has returned 10.7% over the past three years.
WWLAX has an expense ratio of 0.90% compared with the category average of 0.94%.
Fidelity Equity-Income Fund (FEQIX - Free Report) aims to provide reasonable income along with the potential for capital appreciation. The fund invests most of its assets in income-producing equity securities, which tend to lead to investments in large-cap value stocks. FEQIX carries a Zacks Mutual Fund Rank #1 and has returned 13.2% over the past three years.
As of the end of July 2021, FEQIX held 126 issues, with 3.33% of its assets invested in JPMorgan Chase & Co.
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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