The U.S. stock market continues to deliver strong performance, with all major indices — including the S&P 500, the tech-heavy Nasdaq Composite, and the Dow Jones Industrial Average — largely extending their record-setting rally. The markets have remained resilient, mainly due to ongoing innovations in Artificial Intelligence and rising hopes for additional interest rate cuts by the Federal Reserve. However, a partial government shutdown after Congress failed to pass a funding bill has created uncertainties, as it has delayed the release of crucial economic data.

The Consumer Confidence Index for September dropped sharply by 3.6 points, reaching its lowest level since April, driven by inflation and a weakening job market. The labor market also showed signs of strain, as the Job Openings and Labor Turnover Survey reported that job openings increased marginally by 19,000 to 7.227 million in August, while hiring decreased by 114,000 to 5.126 million. Market participants expect the Fed to cut interest rates to help boost the labor market, since inflation continues to accelerate moderately in line with the Fed’s expectations.

Amid such 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) , Nuveen Large Cap Value Fund (TCLCX Quick QuoteTCLCX - Free Report) and Invesco Comstock Fund (ACSTX Quick QuoteACSTX - Free Report) as the major holdingsto 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, which include 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 NVIDIA (8.8%), Apple (6.7%), and Microsoft (6.3%) as of June 30, 2025.

NOIEX’s three-year and five-year annualized returns are 18.7% and 15%, 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 16.2% and 12.4%, 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 others 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 16% and 15.9%, respectively. FBLEX has an annual expense ratio of 0.82%.

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

Charles J Carr has been the lead manager of TCLCX 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.

TCLCX’s three-year and five-year annualized returns are 14.8% and 14.1%, respectively. TCLCX has an annual expense ratio of 0.71%.

Invesco Comstock Fund invests most of its assets, along with borrowings, if any, in common stocks, derivatives and other instruments with similar economic characteristics, irrespective of their market capitalization. ACSTX also invests a small portion of its net assets in real estate investment trusts.

Kevin C. Holt has been the lead manager of ACSTX 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.

ACSTX has a 3-year and 5-year annualized returns are 14.6% and 17.7%, respectively. The annual expense ratio of 0.79%.

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