Large-cap blend mutual funds seek to offer value appreciation through capital gains with relatively less volatility by investing in both value and growth stocks. Blend funds, also known as “hybrid funds,” owe their origin to a graphical representation of a fund’s equity-style box. In addition to diversification, blend funds are great for investors seeking a mix of growth and value.
Meanwhile, significant exposure to large-cap stocks makes these blend funds safer for risk-averse investors than small-cap and mid-cap funds. Companies with a market capitalization above $10 billion are generally considered large-cap firms. Also, these funds have a long-term performance history and assure more stability than mid or small caps.
Below, we share with you three top-ranked large-cap blend mutual funds, viz., Fidelity Dividend Growth FDGFX, BNY Mellon Income Stock MPISX and PGIM Quant Solutions Large-Cap Cor Eq PTMAX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Dividend Growth fund seeks capital appreciation. FDGFX invests most of its assets in Equity securities.
Fidelity Dividend Growth fund has three-year annualized returns of 10.7%. As of April 2024, FDGFX held 133 issues, with 6.8% of its assets invested in Microsoft Corp.
BNY Mellon Income Stock fund invests most of its net assets in dividend-paying stocks, emphasizing value and growth characteristics. MPISX advisors prefer to invest in convertible bonds, preferred stocks, fixed-income securities, American Depositary Receipts and money market instruments.
BNY Mellon Income Stock fund has three-year annualized returns of 11.6%. John C Bailer has been one of the fund managers of MPISX since 2011.
PGIM Quant Solutions Large-Cap Cor Eq fund seeks long-term after-tax growth of capital by investing in common stock and convertible preferred securities of large and medium-sized U.S. companies. PTMAX advisors try to limit taxes by attempting to avoid short-term capital gains and by selling securities that have fallen in value in order to generate losses that can be used to offset realized capital gains on other securities.
PGIM Quant Solutions Large-Cap Cor Eq has three-year annualized returns of 10.3%. PTMAX has an expense ratio of 0.72% compared with the category average of 0.78%.
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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