Investors looking for exposure to both value and growth stocks, while seeking returns at a lower level of risk, may consider large-cap blend mutual funds. Large-cap funds offer more stability than mid or small caps, and are thus safer. Generally, companies with market capitalization of more than $10 billion are considered large caps. However, due to their significant international exposure, large-cap companies run the risk of being hit by global woes.
Blend funds, also called hybrid funds, owe their origin to the graphical representation of their equity style box. In addition to diversification, blend funds offer a great mix of growth and value investment.
Below, we share with you three large-cap blend mutual funds, viz., SouthernSun U.S. Equity Fund Class N SSEFX, Fidelity Advisor Diversified Stock Fund Class O FDESX and BNY Mellon Income Stock Fund Class M Shares MPISX. Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. Investors can click here to see the complete list of funds.
SouthernSun U.S. Equity Fund Class N invests most of its assets, along with borrowings, if any, in common stocks of small to mid-capitalization U.S. companies. SSEFX advisors invest in stocks using a research-driven, value-oriented investment strategy.
SouthernSun U.S. Equity Fund Class N has three-year annualized returns of 15.0%. As of the end of June 2022, SSEFX has 19 issues and invested 6.87% of its net assets in Dycom Industries.
Fidelity Advisor Diversified Stock Fund Class O invests most of its net assets in common stocks of domestic and foreign companies using growth stocks, value stocks, or both strategies. FDESX advisors choose to invest in stocks based on fundamental analysis factors like industry position, as well as market and economic conditions.
Fidelity Advisor Diversified Stock Fund Class O has three-year annualized returns of 12.2%. FDESX has an expense ratio of 0.44% compared with the category average of 0.99%.
BNY Mellon Income Stock Fund Class M Shares seeks capital appreciation along with current income by investing most of its assets along with borrowings, if any, in common stocks of preferably large-cap companies that pay out dividend. MPISX advisors also invest a small portion of its net assets in convertible securities and preferred stocks.
BNY Mellon Income Stock Fund Class M Shares has three-year annualized returns of 11.5%. John C Bailer has been the fund manager of MPISX since December 2011.
To view the Zacks Rank and the past performance of all Large-Cap Blend Mutual Funds, investors can click here to see the complete list of Large-Cap Blend Mutual Funds.
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