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 their 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.
Fidelity Large Cap Value Enhanced Index Fund (MUTF:FLVEX) 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 Fund Large Cap Value Portfolio (MUTF:GTMEX) 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.
Wade Wescott is the fund manager and has managed this fund since 2008.
Transamerica Partners Large Value Fund (MUTF:DVEIX) seeks long-term capital growth. The fund invests in stocks of companies included in its underlying fund. It invests a large chunk of its assets in large cap companies. According to the managers, large cap companies include companies with market capitalizations at the time of purchase that are within the market capitalization range of any stock in the Russell 1000 Index. The large cap value mutual fund returned 13.7% in the last one year.
As of December 2014, this fund held 108 issues with 3.46% of its assets invested in JPMorgan Chase & Co.
Sterling Capital Behavioral Large Cap Value Equity Fund A (MUTF:BBTGX) invests a majority of its assets in companies having market capitalizations identical to those listed in the Standard & Poor's 500 Index. The fund generally invests in common stocks of companies that are located in the U.S. It may also consider REITs for profitable investment. The large cap value mutual fund returned 14.5% in the last one year.
The fund has an expense ratio of 1.06% as compared to category average of 1.13%.