BlackRock Inc. is one of the world’s leading asset management firms offering a range of risk management, strategic advisor and enterprise investment system services. With about $6.8 trillion worth of assets under management (excluding money market assets), as of Jun 30, 2019, the company caters to institutional, intermediary as well as individual investors.
Its offerings range from individual and institutional separate accounts to mutual funds and other pooled investment options. BlackRock aims to provide a wide range of investment solutions to strike a balance between risk and opportunities.
Furthermore, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Let’s consider mutual funds from BlackRock for stunning returns.
BlackRock’s Performance in 2019
The fund family has returned 11.3% in the past year. The initial investment of the majority of BlackRock mutual funds ranges from $0 to $1,000. As of Dec 31, 2019, out of the total number of funds under BlackRock, about 25.2% were load funds, while the remaining 74.8% were no-load funds.
Further, BlackRock New York Municipal Opportunities Fund Institutional Shares (MANKX - Free Report) turned out as one of the best-performing mutual funds from the BlackRock family. The fund posted solid gains in the year-to-date (YTD) timeframe. MANKX, whose income is free from Federal income tax and New York State and New York City personal income taxes, has returned 6.2% over the last one-year period and 6% so far this year.
What Contributed to BlackRock’s Gains?
BlackRock invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 50.9% over the past year, turning up as the best-performing sector so far this year among the 11 S&P 500 sectors.
4 Best Funds
Given such circumstances, we have highlighted four BlackRock mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
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 their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
BlackRock High Yield Bond Portfolio Investor A Shares (BHYAX - Free Report) fund seeks appreciation of total return which is on par with income generation. BHYAX invests the majority of its assets in high-yield bonds. The fund also invests in non-investment grade bonds with maturities of 10 years or less.
This Sector - High Yield-Bonds product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one-year and three-year benchmarks are 15.1% and 6.3%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 0.93%, which is below the category average of 1.02%.
BlackRock Advantage Small Cap Growth Fund Investor A Shares (CSGEX - Free Report) aims to generate high returns. The fund follows a research-intensive process and invests most of its assets in equity securities of small-capitalization companies that have ample scope for growth. The fund mostly invests in U.S. companies.
This Zacks sector – Small Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
CSGEX has an annual expense ratio of 0.75%, which is below the category average of 1.23%. The fund has one and three-year returns of 33.5% and 13.2%, respectively.
BlackRock Advantage Small Cap Core Fund Investor A Shares (BDSAX - Free Report) seeks growth of capital for the long run. The fund invests a bulk of its assets in equity securities of companies that are included on the Russell 2000 Index. BDSAX aims to buy both preferred and common stocks.
This Sector - Small Cap Blend product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one-year and three-year benchmarks are 31.8% and 9.8%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 0.75%, which is below the category average of 1.12%.
BlackRock Advantage Large Cap Growth Fund Investor A Shares (BMCAX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets and any borrowings for investment purposes in securities of large-cap U.S. companies and derivatives that possess equivalent economic characteristics to such securities.
This Zacks sector – Mid Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BMCAX has an annual expense ratio of 0.87%, which is below the category average of 1.06%. The fund has one and three-year returns of 33.4% and 16.8%, respectively.
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