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3 Best-Rated Large-Cap Blend Mutual Funds to Buy Now

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Investors looking for exposure to both value and growth stocks, while seeking returns at a lower level of risk, may consider large-cap blend mutual funds. Large-cap funds offer more stability than mid or small caps and are thus safer too. Generally, companies with market capitalization of more than $10 billion are considered large-cap firms. However, due to their significant international exposure, large-cap companies run the risk of being hit by global woes.

Blend funds – also called “hybrid funds” – owe their origin to the graphical representation of their equity style box. In addition to diversification, blend funds offer a great mix of growth and value investment.

Below we share with you three top-rated large-cap blend mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of large-cap blend funds, their Zacks Rank and past performance.

VALIC Company I Large Cap Core seeks capital appreciation over the long run with the prospect for current income. VLCCX invests the majority of its assets in common stocks of companies having large-size market capitalization. The fund invests in securities that are believed to be undervalued with a strong growth potential over the long term. VLCCX may invest a maximum of 20% of its assets in securities of foreign issuers. VALIC Company I Large Cap Core has a three-year annualized return of 11.8%.

Guy W. Pope is the fund manager of VLCCX since 2011.

T. Rowe Price Capital Opportunity (PRCOX - Free Report) invests the majority of its assets in companies that are listed in the S&P 500 Index. Though PRCOX invests in companies throughout the globe irrespective of market capitalization, it primarily focuses on acquiring common stocks of domestic large-cap firms. T. Rowe Price Capital Opportunity has a three-year annualized return of 11.2%.

PRCOX has an expense ratio of 0.70% compared with the category average of 1.02%.

Fidelity Contrafund (FCNTX - Free Report) seeks capital appreciation and invests in common stocks of companies that are believed to be underestimated in value. FCNTX focuses on acquiring both "growth" and "value" stocks of companies all over the world. Factors such as financial strength and economic conditions are taken into consideration before investing in a company. Fidelity Contrafund has a three-year annualized return of 11.3%.

William Danoff is the fund manager of FCNTX since 1990.

To view the Zacks Rank and past performance of all large-cap blend 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.


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