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, providing long-term performance history and assuring 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-equity). It is common for some investors to invest in value funds for the 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 4 best rated large 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 funds, investors can click here to see the complete list of funds.
Fidelity Large Cap Value Enhanced Index (FLVEX - MF report) seeks capital growth over the long run. The fund invests a lion’s share of its assets in companies included in the Russell 1000 Value Index, which consists of large cap companies. It uses quantitative analysis of factors including historical valuation, growth and profitability to select companies that are believed to provide more return than the index. The fund focuses on acquiring common stocks of companies throughout the globe. The large cap value mutual fund returned 14% in the last one year.
The fund has an expense ratio of 0.45% as compared to category average of 1.13%.
Glenmede Large Cap Value (GTMEX - MF report) invests a major portion of its assets in large cap companies that are believed to be undervalued. It 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. The fund seeks to provide maximum total return over the long run with reasonable risk. The large cap value mutual fund returned 15.3% in the last one year.
