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Buy These Top 4 Large-Cap Value Funds Today

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Large-cap funds are considered prudent choices for risk-averse investors when compared to their small and mid-cap counterparts. These funds have exposure to large-cap stocks, with a long-term performance history and offer more stability than mid or small caps. 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, i.e., 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 dividends. 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 value funds for yield should check the mutual fund yield as not all value funds comprise companies that primarily use their earnings to pay out dividends.

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.

American Century NT Large Company Value Fund G aims primarily for appreciation of capital in the long term. The fund invests a minimum of 80% of its net assets in equity securities of companies that are a part of Russell 1000 Index. ACLLX has three and five-year annualized returns of 12.1% and 7.4%, respectively.

As of December 2018, ACLLX held 72 issues, with 3.33% of its assets invested in JPMorgan Chase & Co.

Principal Equity Income A (PQIAX - Free Report) aims to provide current income and long-term appreciation of capital and income. PQIAX invests a majority of its net assets in equity securities that pay dividends. The fund mostly invests in mid- and large-cap companies. PQIAX has three and five-year annualized returns of 14.2% and 8.9%, respectively.

PQIAX has an expense ratio of 0.89% compared with the category average of 1.00%.

Vanguard Equity-Income Investor (VEIPX - Free Report) aims to provide a level of current income that’s above-average along with a sound long-term capital growth. The fund primarily invests in common stocks of medium-sized and large companies that the advisor feels are undervalued and pay above-average levels of dividend income. VEIPX has three and five-year annualized returns of 13.3% and 9.6% respectively.

James P. Stetler is one of the fund managers of VEIPX since 2003.

Praxis Value Index A (MVIAX - Free Report) aims for capital appreciation by primarily investing in American equity securities. The fund seeks to imitate the performance of the U.S. large-cap value equities market, as measured by the S&P 500 Value Index. As of Feb 28, MVIAX has three and five-year annualized returns of 12.9% and 7.6% respectively.

MVIAX has an expense ratio of 0.94% compared with the category average of 1.00%.  

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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