Large-cap value mutual funds provide excellent choices for
investors who seek returns subject to low risk. While mutual funds
investing in value stocks have the potential to deliver higher
returns and exhibit lower volatility compared to growth and blend
counterparts, large cap funds usually provide a safer option than
small-cap or mid cap funds. Thus investors may look for large-cap
value funds to earn in a moderate return volatile environment.
Value funds generally invest in stocks that tend to trade at a
price lower than its fundamentals (i.e. earnings, book value,
Debt-Equity) and pay out dividends. Value stocks are expected to
outperform the growth ones across all asset classes when considered
on a long-term investment horizon and are less susceptible to
trending markets. However, investors interested in choosing value
funds for yield, should check the mutual fund yield as not all
value funds comprise solely of companies that primarily use their
earnings to pay out dividends.
Meanwhile, large-cap funds have exposure to large-cap stocks
that are expected to provide long-term performance history and
assure 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
Below we share with you five top-rated, 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.
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 large-cap
Fidelity Blue Chip Value
) invests a large chunk of its assets in common stocks of blue-chip
companies. FBCVX invests in securities of companies that are
believed to be undervalued with respect to factors including sales,
earnings and growth potential. FBCVX invests in securities issued
throughout the globe. The Fidelity Blue Chip Value fund has a
three-year annualized return of 16.8%.
Sean Gavin is the fund manager of FBCVX since Oct 17, 2014.
Dodge & Cox Stock
) seeks long-term principal and income appreciation. DODGX
maintains a diversified portfolio by investing the lion's share of
its assets in equity securities, which include common stocks,
depositary receipts and preferred stocks. DODGX may invest
one-fifth of its assets in dollar-denominated securities of
non-S&P 500 foreign companies that are traded in the U.S. The
Dodge & Cox Stock fund has a three-year annualized return of
As of September 2015, DODGX held 69 issues, with 4.16% of its
assets invested in Wells Fargo & Co.
Dreyfus Strategic Value A
) uses quantitative and fundamental analysis to invest the majority
of its assets in stocks. DAGVX follows a "bottom-up" approach to
identify stocks with attractive value, encouraging fundamentals and
a strong momentum. DAGVX may invest a maximum of 30% of its assets
in securities of non-US companies. The Dreyfus Strategic Value A
fund has a three-year annualized return of 17.1%.
DAGVX has an expense ratio of 0.98% as compared to the category
average of 1.11%.
VALIC Company II Large Cap Value
) seeks higher total return than the Russell 1000 Value Index.
VACVX invests a large share of its assets in equity securities of
large-cap companies with market capitalization more than the
smallest member of the Russell 1000 Index. The VALIC Company II
Large Cap Value fund has a three-year annualized return of
As of August 2015, VACVX held 126 issues, with 4.1% of its
assets invested in Occidental Petroleum Corp.
AB Value A
) generally invests in equity securities of domestic large-cap
firms to construct a diversified portfolio. ABVAX focuses on
acquiring stocks of companies that are believed to be undervalued
compared to their future earnings growth and dividend-paying
prospects. The AB Value A fund has a three-year annualized return
ABVAX has an expense ratio of 1.04% as compared to the category
average of 1.11%.
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
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
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