Americans are still showing confidence in the economy, even as inflation remains high and job openings and hiring continue to decline. At the same time, rising gasoline prices are adding further strain. Consumer confidence saw a marginal rise in March, though worries about the broader economic outlook persist, especially with growing geopolitical tensions.

Given this situation, investors may consider investing in large-cap value funds, such as VALIC Company I Systematic Value Fund (VBCVX Quick QuoteVBCVX - Free Report) , Northern Income Equity (NOIEX Quick QuoteNOIEX - Free Report) and Bridge Builder Large Cap Value Fund (BBVLX Quick QuoteBBVLX - Free Report) .

Consumer Confidence Rises, Concerns Persist

The consumer confidence index rose 0.8 points sequentially in March to 91.8, surpassing analysts’ expectations of 88, according to the Conference Board. Despite this unexpected improvement, overall consumer sentiment remains subdued.

Inflation expectations over the next 12 months climbed to 5.2% from 4.5% in February, marking the highest level since May 2025. Meanwhile, weaker job data contributed to the cautious outlook. Job openings fell by 358,000 in February, while layoffs increased significantly. The job openings rate slipped to 4.2% from 4.4%, and hiring dropped by 498,000 to 4.849 million. The unemployment rate also edged up to 4.4% from 4.3% a month earlier.

Trade pressures linked to tariffs under President Donald Trump have been influencing commodity prices. In addition, oil prices have surged by more than 50% over the past month due to ongoing tensions involving Iran.

As a result, Wall Street has remained volatile through much of the first quarter, and these economic and geopolitical concerns may continue to drive market uncertainty in the near term.

3 Best Choices

We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

VALIC Company I Systematic Value Fund primarily invests in equity securities of U.S. large- and mid-cap companies, selected on their inclusion on the Russell 1000 Value Index, which identifies companies with value characteristics such as lower price-to-book ratios and lower expected growth values.

VBCVX’s 3-year and 5-year annualized returns are 16.1% and 13.6%, respectively. VALIC Company I Systematic Value Fundhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.65, which is lower than its category average.

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’s approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation.

NOIEX’s 3-year and 5-year annualized returns are 21.5% and 14.9%, respectively. Northern Income Equity fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.49%, which is lower than its category average.

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

Bridge Builder Large Cap Value Fund aims for capital appreciation. BBVLX invests the majority of its assets in securities of large-capitalization companies and other instruments, such as certain investment companies, with economic characteristics that seek to track the performance of securities of large-capitalization companies.

Bridge Builder Large Cap Value Fund has 3-year and 5-year annualized returns of 14.8% and 11.7%, respectively. BBVLX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.22%, which is lower than its category average.

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

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