The Federal Open Market Committee stated in the minutes of its Jan. 27-28, 2026, meeting that the Federal Reserve kept the federal funds rate at 3.5-3.75%, while adopting a cautious data-dependent strategy. The economy continues to grow strongly because consumers continue their spending activities, while businesses use their funds to acquire AI technology. Financial markets maintain their expectation of two rate reductions this year, depending upon upcoming economic data.

In this current market environment, large-cap value mutual funds are good investment options because they invest in assets of companies that generate stable earnings, strong balance sheet and consistent cash flows, as well as reasonable price-to-earnings ratios, offering a potential margin of safety.

We have chosen three large-cap value mutual funds — Invesco Value Opportunities ((VVOAX Quick QuoteVVOAX - Free Report) ), Northern Income Equity ((NOIEX Quick QuoteNOIEX - Free Report) ) and Sterling Capital Behavioral Large Cap Value Equity Fund ((BBTGX Quick QuoteBBTGX - Free Report) ) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lowerthan the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee. 

Invesco Value Opportunities fund seeks to achieve its investment objective by investing primarily in a non-diversified portfolio of common stocks and other equity securities of value companies.

Jonathan Edwards has been the lead manager of VVOAX since March 30, 2015. Most of the fund’s holdings were in companies like Coherent Corp. (4%), MKS Inc. (2.6%) and NRG Energy, Inc. (2.4%) as of Oct. 31, 2025.

VVOAX’s 3-year and 5-year annualized returns are 21.8% and 21.7%, respectively. Its net expense ratio is 0.99%. VVOAX has a Zacks Mutual Fund Rank #1.

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

Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX invests in non-investment grade, fixed-income and convertible debt securities.

Reed A. LeMar has been the lead manager of NOIEX since July 31, 2017. Most of the fund's holdings were in companies like NVIDIA Corp. (8.9%), Apple Inc. (7.6%) and Microsoft Corp (6%) as of Sept. 30, 2025.

NOIEX's 3-year and 5-year annualized returns are 19.7% and 15.1%, respectively. Its net expense ratio is 0.49%. NOIEX has a Zacks Mutual Fund Rank #1.

Sterling Capital Behavioral Large Cap Value Equity Fund seeks capital growth, current income, or both, primarily through investment in stocks. BBTGX invests in domestically traded common stocks of large companies whose capitalization is within the range of those companies listed on the Russell 1000 Value Index, as well as American Depositary Receipts.

Robert W. Bridges has been the lead manager of BBTGX since Aug. 21, 2013. Most of the fund’s holdings were in companies like JPMorgan Chase & Co. (4.3%), International Business Machines Corp (2.3%) and Cisco Systems, Inc. (2.2%) as of Sept. 30, 2025.

BBTGX’s 3-year and 5-year annualized returns are 18.8% and 16.4%, respectively. Its net expense ratio is 1.05%. BBTGX has a Zacks Mutual Fund Rank #1.

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top performing mutual funds, each week.Get it free >>