One of the world’s premier asset management firms, BlackRock Inc. offers a wide 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, it caters to institutional, intermediary and individual investors.
BlackRock’s offerings include individual and institutional separate accounts, mutual funds and other pooled investment options. The fund family aims to provide an array of investment solutions to its clients, helping them strike the right balance between risk and opportunities.
Furthermore, effective fund management and the ability to survive market volatility have resulted in a strong fund performance. Let’s consider the mutual funds from BlackRock for stunning returns.
BlackRock’s Performance So Far in 2020
The fund family has a history of providing upbeat returns. The initial investment of the majority of BlackRock mutual funds ranges from $0 to $1,000. Further, BlackRock Advantage Small Cap Core Fund Investor A Shares (BDSAX - Free Report) turned up as one of the best-performing mutual funds from the BlackRock family. The fund has posted solid gains over the past three years.
BDSAX, which invests the majority of its assets in securities of those companies that are included in or have market capitalizations similar to the securities comprising the Russel 2000 Index, has returned 7.2% in last one month alone.
BlackRock invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the issuer 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 7.1% in YTD and has remained the best performing sector so far this year among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
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 three and five-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 three and five-year benchmarks are 2.5% and 3.2%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 0.94%, 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. CSGEX 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 with 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 three and five-year returns of 9.1% and 6.4%, respectively.
BlackRock Mid-Cap Growth Equity Portfolio Investor A Shares (BMGAX - Free Report) fund aims for capital appreciation over the long term. The fund invests majority of its assets in equity securities of mid-cap U.S. companies, which its management believes would have more-than-average earnings growth potential. The product mostly invests in common stocks, preferred stocks, convertible securities and other equity securities.
This Sector - Mid Cap Growth product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the three and five-year benchmarks are 19% and 14.5%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 1.05%, which is below the category average of 1.16%.
BlackRock Floating Rate Income Portfolio Investor A Shares (BFRAX - Free Report) seeks high current income and capital appreciation. The fund invests the majority of its assets in floating rate investments and investments that are the economic equivalent of floating rate investments. These investments enable BFRAX to attain a floating rate of income.
This Zacks sector – Diversified Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
BFRAXhas an annual expense ratio of 0.99%, which is below the category average of 1.08%. The fund has three and five year returns of 1.1% and 1.9%, respectively.
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