Investors looking for exposure to both value and growth stocks, while seeking returns at a lower level of risk, may consider large-cap blend mutual funds. Large-cap funds offer more stability than mid or small caps and are thus safer. Generally, companies with market capitalization of more than $10 billion are considered large cap. However, due to their significant international exposure, large-cap companies run the risk of being hit by global woes.

Blend funds – also called “hybrid funds” – owe their origin to the graphical representation of their equity style box. In addition to diversification, blend funds offer a great mix of growth and value investment.

Below we share with you four top-ranked large-cap blend mutual funds. 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 large-cap blend funds, their Zacks Rank and past performance.

American Century Equity Growth Fund Investor (BEQGX – Free Report) seeks growth of capital for the long run. BEQGX invests the lion’s share of its assets in equity securities. The portfolio manager applies quantitative management techniques in a two-step process to select stocks. The portfolio manager ranks stocks of U.S. companies which have market capitalization of more than $2 billion and then uses a quantitative model to build a portfolio of stocks from that ranking. American Century Equity Growth Fund Investor has returned 16.5% over the last one-year period.

BEQGX has an expense ratio of 0.67% compared with the category average of 0.99 %. 

Fidelity Advisor Diversified Stock Fund O (FDESX – Free Report) heavily invests in both U.S. as well as non-U.S. issuers. FDESX invests in either “growth” or “value” stocks or in both. The fund seeks appreciation of capital. Fidelity Advisor Diversified Stock Fund O has returned 19.6% over the last one-year period.

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