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Buy These 4 Large-Cap Value Funds for Amazing Gains

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Large-cap funds are better than small or mid-cap funds for risk-averse investors. These funds have exposure to large-cap stocks, with a long-term performance history and more stability than what mid or small caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large-cap companies might be affected by a global downturn.

Investors looking for a bargain — stocks trading at a discount — are mostly interested in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield should check the mutual fund yield as not all value funds comprise companies that use their earnings primarily to pay out dividend.

Below we share with you four top-ranked, large-cap value 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 value funds.

Edgar Lomax Value (LOMAX - Free Report) aims for long-term capital growth while providing some income. The fund mostly invests in large-cap companies that are well-organized. The fund invests at least 85% of its net assets in equity securities, which may comprise common stocks or securities that possess the characteristics of common stocks. LOMAX has three and five-year annualized returns of 13.8% and 10% respectively.

As of February 2019, LOMAX held 60 issues, with 5.1% of its assets invested in Pfizer Inc.

Carillon Eagle Growth & Income A (HRCVX - Free Report) seeks long-term capital growth first, and then current income. The fund primarily invests in common stocks of domestic companies that can be categorized as large- or mid-cap. HRCVX has three and five-year annualized returns of 13.6% and 9.1% respectively.

HRCVX has an expense ratio of 0.98% compared with the category average of 1%.  

Commerce Value (CFVLX - Free Report) invests the major portion of its assets in common stocks. The fund primarily seeks capital appreciation and then current income. CFVLX mostly invests in stocks that are part of the Russell 1000 Value Index that provides above-average dividend yield. CFVLX has three and five-year annualized returns of 12.1% and 9.3% respectively.

Joseph C. Williams is one of the fund managers of CFVLX since 1997.

Parnassus Core Equity Investor (PRBLX - Free Report) aims for capital growth and current income by investing the majority of its net assets in a diversified portfolio of equity securities. These equity securities comprise common and preferred stocks. PRBLX has three and five-year annualized returns of 12.6% and 10.1% respectively.

PRBLX has an expense ratio of 0.87% compared with the category average of 0.95%.  

To view the Zacks Rank and past performance of all large-cap value mutual funds, investors can click here to see the complete list of funds.

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