4 Best BlackRock Mutual Funds You Should Eye in August
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 $7.3 trillion worth of assets under management (excluding money market assets), as of Jun 30, 2020, 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 strong fund performance. Let’s consider the mutual funds from BlackRock for stunning returns.
BlackRock’s Performance So Far This Year
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 has consistently remained 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 capitalization similar to the securities comprising the Russel 2000 Index, has returned 27.3% in last three months 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 14.8% 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 Emerging Markets Fund, Inc. Investor A Shares MDDCX fund seeks appreciation of capital over the long term. The fund invests the lion’s share of its assets in equity securities of companies from countries with developing capital markets. Such countries include countries that comprise the MSCI Emerging Markets Index.
This Sector - Non Us-Equity 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 7.2% and 5.6%, 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 1.12%, which is below the category average of 1.32%.
BlackRock Advantage Small Cap Growth Fund Investor A Shares CSGEX 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 1.22%. The fund has three and five-year returns of 9.7% and 7.1%, respectively.
BlackRock CoreAlpha Bond Fund Investor A Shares BCRAX aims to offer a combination of income and capital appreciation. This is a “feeder” fund that invests all its assets in the Master Portfolio. BCRAX invests the majority of its assets in bonds. The fund may also invest in bonds issued by companies located in foreign countries including those in emerging markets.
This Sector - Diversified 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 5.5% and 4.1%, 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 0.54%, which is below the category average of 0.66%.
BlackRock Floating Rate Income Portfolio Investor A Shares BFRAX 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 1.4% and 2.1%, respectively.
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