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.
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 8.6%.
William Danoff is the fund manager of FCNTX since 1990.
Vanguard Growth & Income Investor (VQNPX - Free Report) invests in a diversified group of stocks chosen on the basis of quantitative analysis. VQNPX seeks stocks that are believed to provide dividend income and have an impressive growth prospect. Also, as as a group, these stocks appear likely to provide higher returns than the Standard & Poor's 500 Index while having similar risk characteristics. VQNPX invests a minimum of 65% of its assets in companies included on the index. The Vanguard Growth & Income Investor fund has a three-year annualized return of 9.5%.
VQNPX has an expense ratio of 0.34% as compared to the category average of 1.05%.
Hartford Disciplined Equity HLS IA (HIAGX - Free Report) maintains a diversified portfolio by investing a major portion of its assets in common stocks of companies across a wide range of sectors. Though HBGIX invests in securities irrespective of market capitalization, it primarily emphasizes large-cap companies with market capitalization within the range of the S&P 500 Index. HIAGX may invest a maximum of 20% of its assets in securities of foreign firms. Hartford Disciplined Equity HLS IA has a three-year annualized return of 10.9%.
As of August 2016, HIAGX held 73 issues with 2.48% of its assets invested in JP Morgan Chase & Co.
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.
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