Amid volatility, major U.S. indexes have given investors positive returns from the lows of 2022. Over the past year the Dow, the S&P 500 and the tech-heavy NASDAQ have delivered positive returnsof 12.3%, 21.1% and 36.4%, respectively. Investors await the Federal Reserve’s interest rate decision, which is expected by the end of this month. However, concerns over Federal Reserve reactions due to higher-than-expected Consumer Price Index (CPI) data and increased retail sales for the month of December remain for investors.

Rising inflation numbers are still a concern for the economy. CPI, which is the most accepted gauge for inflation, increased 0.3% in December compared to a 0.1% increase in November. On a year-over-year basis, the index rose 3.4%, against the 3.1% increase in November, mostly due to the rise in shelter costs.

The Commerce Department reported that the retail sales increased 0.6% in December. On a year-over-year basis, retail sales were up 5.6% compared to 4.8% in November, mostly due to an increase in the sale of clothing and accessories as well as online businesses during the holiday season.

The labor market is still tight as the economy added 216,000 jobs, the unemployment rate was 3.7%, flat month over month, and the average hourly wage rate increased 0.4% in December. Investors are expecting the central bank to be less hawkish and initiate overnight interest rate cuts this year. However, worries over the Fed officials signals of a more cautious approach to interest rate cuts is a concern. The Fed can keep the interest rate high for longer to meet its ambitious 2% inflation target. A higher interest rate can impact corporate performance and, thereby, stock prices.

Thus, risk-averse investors interested in both growth and value investing may opt for large-cap blend mutual funds as their major holdingsto achieve their objective. While large-cap funds usually provide a safer option for risk-averse investors, when compared to small-cap and mid cap funds, blend funds provide significant exposure to both growth and value stocks. Blend funds, also known as “hybrid funds,” aim for value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity style box.

Meanwhile, large-cap blend funds have exposure to large-cap stocks, providing long-term performance history and assuring more stability than what mid or small caps offer. Generally, companies with market capitalization of more than $10 billion are considered as large-cap firms. However, due to their significant international exposure, large-cap companies might get affected during global downturn.

We have thus selected three large-cap blend mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, and carry a low expense ratio compared to the category average of 0.84%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Voya Growth and Income Portfolio (IIVGX Quick QuoteIIVGX - Free Report) fund invests most of its net assets in common stocks. IIVGX advisors generally choose to invest in companies that have the potential for capital appreciation, income growth, or both.

Vincent J. Costa has been the lead manager of IIVGX since Jun 29, 2013. Most of the fund’s exposure is in companies like Microsoft (8.4%), Amazon.com (5.7%) and Meta Platforms (3.8%) as of Sep 30, 2023.

IIVGX’s three-year and five-year annualized returns are 11.9% and 16.2%, respectively. IIVGX has an annual expense ratio of 0.67%.

To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

MFS Blended Research Core Equity (MUEVX Quick QuoteMUEVX - Free Report) fund invests most of its net assets in equity securities. MUEVX advisors generally invest in securities that represent an ownership interest in a company or other issuer.

Matthew W. Krummell has been the lead manager of MUEVX since May 31, 2008. Most of the fund’s exposure is in companies like Microsoft (7.2%), Apple (6.6%) and Amazon.com (3.1%) as of Sep 30, 2023.

MUEVX’s three-year and five-year annualized returns are 11.8% and 15.8%, respectively. MUEVX has an annual expense ratio of 0.39%.

Northern Large Cap Core (NOLCX Quick QuoteNOLCX - Free Report) fund invests most of its net assets in a broadly diversified portfolio of domestic and foreign large-cap companies that are traded in the U.S. NOLCX advisors consider large-cap companies as those with market capital within the range of the companies listed on the Russell 1000 Index.

Michael R. Hunstad has been the lead manager of NOLCX since Jul 30, 2019. Most of the fund’s exposure is in companies like Apple (7.6%), Microsoft (7.1%) and Alphabet (4.6%) as of Sep 30, 2023.

NOLCX’s three-year and five-year annualized returns are 11.8% and 14.4%, respectively. NOLCX has an annual expense ratio of 0.45%.

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