Investors looking for bargain, i.e., stocks at a discount, are mostly interested in investing in value stocks. To understand value funds, it is important to learn about value stocks – as value mutual funds are those that invest in stocks that are trading at discounts to book value, have low price-to-earnings ratio and have high dividend yields. The value funds can be also divided into three segments depending on their market capitalizations. Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Below we will share with you 3 best ranked all-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 cap value funds, investors can click here to see the complete list of funds.
American Century Capital Value Investor (ACTIX - Free Report) invests in stocks of mid to long-cap firms that are considered to be undervalued. The portfolio manager looks for stocks that are either out of favor or whose value is unrecognized by the market. This is done by looking at earnings, cash flows and/or assets that are not reflected in the stock prices. ACTIX has returned 6.7% over the last 1-year period.
ACTIX’s annual expense ratio of 1% is lower than the category average of 1.11%.
DFA Tax-Managed US Targeted Value (DTMVX - Free Report) seeks capital growth over the long term along with reducing the federal income taxes on returns. DTMVX uses market capitalization weighted approach to buy broad range of securities of U.S. small and mid-cap companies that are considered to be value stocks. A minimum of 80% of DTMVX’s assets is invested in US firms. DTMVX has returned 6.4% over the last 1-year period.
As of Jun 30, DTMVX held 1,487 issues with 0.79% invested in Omnicare Inc.
VY T. Rowe Price Capital Appreciation S (ITCSX - Free Report) seeks high investment return in line with capital preservation. ITCSX employs active asset allocation strategy and investments are allocated in three asset classes. These are equity securities, debt instruments, and money market instruments. A minimum of 50% of its assets will be invested in common stocks. ITCSX has returned 12.2% over the last 1-year period.
David Giroux is the fund manager and has managed ITCSX since 2007.
To view the Zacks Rank and past performance of all high yield bond 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.