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5 Best-Rated Large Cap Value Mutual Funds to Buy Now

Large cap funds usually provide a safer option for risk-averse investors, when compared to small cap and mid cap funds. These funds have exposure to large cap stocks, with long-term performance history and more stability than what mid cap or small caps offer. Meanwhile, investors looking for a bargain, i.e., stocks at a discount, are mostly interested in investing in value stocks. Value stocks are stocks that tend to trade at a price that is lower than its fundamentals (i.e. earnings, book value, debt-to-equity). It is common for some investors to invest in value funds for income or yield. However, not all value funds are comprised solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund's shares.

Below we will share with you 5 top rated large cap value mutual funds . Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their 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 funds .

Fidelity Large Cap Value Enhanced Index ( FLVEX ) seeks capital growth over the long run. FLVEX invests the majority of its assets in companies included in the Russell 1000 Value Index, which consists of large cap companies. FLVEX uses a quantitative analysis of factors including historical valuation, growth and profitability to select companies that are believed to provide more return than the index. FLVEX focuses on acquiring common stocks of companies across the world. The Fidelity Large Cap Value Enhanced Index fund has a three-year annualized return of 12.5%.

FLVEX has an expense ratio of 0.45% as compared to the category average of 1.10%.

MFS Value A ( MEIAX ) generally invests in equity securities including common stocks, securities of REITs and convertible securities. Though MEIAX primarily invests in value companies having large capitalizations, it may also invest in small and mid-cap companies. The MFS Value A fund has a three-year annualized return of 11.9%.

As of July 2015, MEIAX held 97 issues with 4.65% of its assets invested in JPMorgan Chase & Co.

Eaton Vance Large-Cap Value A ( EHSTX ) seeks total return. EHSTX invests a major portion of its assets in securities of large cap companies. EHSTX generally invests in dividend-paying stocks. EHSTX may also invest in non-income producing stocks. EHSTX invests in convertible debt securities of any credit quality including "junk bonds." EHSTX may invest a maximum 25% of its assets in foreign securities including emerging market countries. EHSTX offers dividends quarterly. Capital gains are distributed annually. The Eaton Vance Large-Cap Value A fund has a three-year annualized return of 9.8%.

EHSTX has an expense ratio of 1.01% as compared to the category average of 1.10%.

Glenmede Large Cap Value ( GTMEX ) invests a major portion of its assets in large cap companies that are believed to be undervalued. GTMEX primarily invests in equity securities including dividend-paying common stocks and preferred stocks. Companies having market capitalizations similar to those included in the Russell 1000 Index are considered to be large cap firms by the Advisors. GTMEX seeks to provide maximum total return over the long run with a reasonable amount of risk. The Glenmede Large Cap Value fund has a three-year annualized return of 11.7%.

Wade Wescott is the fund manager and has managed this fund since 2008.

Principal LargeCap Value A ( PCACX ) seeks long-term capital appreciation. PCACX invests a major portion of its assets in equity securities of companies having large market capitalization during the time of purchase. PCACX primarily invests in undervalued equity securities. PCACX also trades portfolio securities. The Principal LargeCap Value A fund has a three-year annualized return of 10.6%.

PCACX has an expense ratio of 0.85% as compared to the category average of 1.10%.

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. Pick the best mutual funds with the Zacks Rank.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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