The U.S. stock market remains volatile mostly due to varied economic reports and corporate news that painted a mixed picture of the domestic economy. Last week, the S&P 500 and the Nasdaq slightly pulled back from recent record highs, while the Dow Jones Industrial Average posted a modest gain.

Investors are largely focused on the Federal Reserve's potential interest rate cut decisions. While a disappointing report on July wholesale inflation dampened some of the enthusiasm, market participants are still largely expecting the Fed to ease key interest rates at its upcoming September meeting. This sentiment has been supported by a handful of other indicators. Retail sales met the streets’ expectations, but other reports showed a contraction in industrial production and a decline in consumer sentiment, with inflation cited as a primary concern.

While market participants await further clarity from the Fed at the upcoming Jackson Hole symposium, the conflicting economic indicators show a challenging environment. This mixed economic picture highlighted the delicate balance the Fed must strike between supporting growth and taming inflation.

Amid such volatile market conditions, risk-averse investors who seek returns subject to low risk may opt for large-cap value mutual funds, such as Northern Funds Income Equity Fund (NOIEX Quick QuoteNOIEX - Free Report) , Goldman Sachs U.S. Equity Dividend and Premium Fund (GVIRX Quick QuoteGVIRX - Free Report) , Fidelity Series Stock Selector Large Cap Value Fund (FBLEX Quick QuoteFBLEX - Free Report) , Invesco Comstock Fund (ACSDX Quick QuoteACSDX - Free Report) and Nuveen Large Cap Value Fund Premier (TRCPX Quick QuoteTRCPX - Free Report) as the major holdings to achieve their objective.

Why Invest in Large-Cap Value Mutual Funds?

While mutual funds investing in value stocks have the potential to deliver higher returns and exhibit lower volatility compared to growth and blend counterparts, large-cap funds usually provide a safer option than small-cap or mid-cap funds. Thus, investors may look for large-cap value funds to earn in a moderate-return, volatile environment.

Value funds generally invest in stocks that tend to trade at a price lower than their fundamentals (i.e., earnings, book value, debt-equity) and pay out dividends. Value stocks are expected to outperform the growth ones across all asset classes when considered on a long-term investment horizon and are less susceptible to trending markets.

Meanwhile, large-cap funds have exposure to large-cap stocks that are expected to provide a long-term performance history and assure more stability than what mid or small caps offer. Companies with a 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.

We have thus selected five large-cap value 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 of less than 1%. 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).

Our Picks

Northern Funds Income Equity Fund seeks a high level of current income compared to other mutual funds by investing most of its net assets in income-producing equity securities, that includes dividend-paying common and preferred stocks. NOIEX advisors also invest in derivatives such as stock index futures contracts to equitize cash and boost portfolio liquidity.

Reed A. LeMar has been the lead manager of NOIEX since July 31, 2017. Most of the fund’s exposure is in companies like Apple (7.6%), NVIDIA (6.4%) and Microsoft (5.3%) as of March 31, 2025.

NOIEX’s three-year and five-year annualized returns are 16% and 15.9%, respectively. NOIEX has an annual expense ratio of 0.49%.

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

Goldman Sachs U.S. Equity Dividend and Premium Fund invests most of its assets, along with borrowings, if any, in dividend-paying common stocks of large-cap domestic issuers. GVIRX advisors consider large-cap stocks as those that generally have public stock market capitalizations above $3 billion.

John Sienkiewicz has been the lead manager of GVIRX since April 22, 2020. Most of the fund’s exposure was in companies like Apple (7%), Microsoft (5.8%) and NVIDIA (5.6%) as of March 31, 2025.

GVIRX’s three-year and five-year annualized returns are almost 14.2% and 13.3%, respectively. GVIRX has an annual expense ratio of 0.75%.

Fidelity Series Stock Selector Large Cap Value Fund invests most of its net assets in stocks of large-cap companies with market capitalization similar to companies listed on the Russell 1000 Index or the S&P 500 Index. FBLEX advisors prefer to invest in undervalued companies compared to other in the same industry in relation to factors such as assets, sales, earnings, growth potential, or cash flow, compared to other companies in the same industry.

Matthew Friedman has been the lead manager of FBLEX since Dec. 6, 2012. Most of the fund’s exposure is in companies like Exxon Mobil (2.5%), Bank of America (2.2%) and Wells Fargo (2.1%) as of April 30, 2025.

FBLEX’s three-year and five-year annualized returns are 13.7% and 16.2%, respectively. FBLEX has an annual expense ratio of 0.82%.

Invesco Comstock Fund invests most of its assets, along with borrowings, if any, in common stocks, derivatives and other instruments with similar economic characteristics, mostly in large-capitalization issues. ACSDX also invests a small portion of its net assets in real estate investment trusts.

Kevin C. Holt has been the lead manager of ACSDX since Aug. 1, 1999. Most of the fund’s exposure is in companies such as Wells Fargo (3.1%), Bank of America (3%) and Microsoft (2.5%) as of April 30, 2025.

ACSDX has a 3-year and 5-year annualized returns are 12.9% and 18.2%, respectively. The annual expense ratio of 0.54%.

Nuveen Large Cap Value Fund Premier invests most of its assets, along with borrowings, if any, in equity securities of large-capitalization value companies. TRCPX advisors may also invest a small portion of its net assets in foreign investments.

Charles J Carr has been the lead manager of TRCPX since Nov. 15, 2018. Most of the fund’s exposure is in companies like JPMorgan Chase (4%), Berkshire Hathaway (3%) and Exxon Mobil (2.7%) as of April 30, 2025.

TRCPX’s three-year and five-year annualized returns are 12.7% and 14.6%, respectively. TRCPX has an annual expense ratio of 0.55%.

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