3 Strong Buy Large-Cap Value Mutual Funds
Investors interested in comparatively safer returns from stocks available at discounted prices may consider large-cap value mutual funds. While large-cap funds usually provide a safer option than small- or mid-cap funds, mutual funds investing in value stocks have the potential to deliver higher returns and exhibit lower volatility than their growth and blend counterparts. Large-cap funds generally invest in securities of companies with market capitalization of more than $10 billion. These 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. Value funds, on the other hand, generally invest in stocks that tend to trade at a price lower than their fundamentals (i.e., earnings, book value and debt-to-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. Below, we share with you three 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 . Vanguard U.S. Value Fund Inv (MUTF: VUVLX ) seeks long-term capital growth and high income. It invests all of its assets in undervalued companies having low price/earnings (P/E) ratios. VUVLX focuses on acquiring stocks of large and mid-cap companies having impressive growth potential and favorable valuations. The fund has a three-year annualized return of 9.3%. VUVLX has an expense ratio of 0.26%, compared with the category average of 1.1%. MFS Value Fund A (MUTF: MEIAX ) generally invests in equity securities, including common stocks, securities of REITs and convertible securities. Though it primarily invests in value companies having large capitalization, it may also invest in small and mid-cap companies. The fund has a three-year annualized return of 10.1%. As of March 2016, MEIAX held 100 issues, with 4.13% of its assets invested in JPMorgan Chase & Co. (NYSE: JPM ). Commerce Value Fund No Load (MUTF: CFVLX ) seeks capital appreciation. It invests a minimum of 65% of its assets in common stocks. Its investments include companies with an impressive earnings growth track record that are believed to pay out dividends. CFVLX may invest a notable portion of its assets in securities of companies from the financial sector. The fund has a three-year annualized return of 9.5%. CFVLX has an expense ratio of 0.70%, compared with the category average of 1.1%. Original Post