Wall Street remains volatile due to soft macroeconomic data and President Trump’s aggressive foreign trade and tariff policies. Investors’ confidence has been shakenfollowing Trump’s decision to impose tariffs on Canada, Mexico and China, the three major trading partners of the United States. Concerns remain over the impact of a global trade war on the U.S. economy at a time when the inflation rate is already elevated. Rising geopolitical tensions are also acting as a headwind.
The Department of Commerce reported that personal consumption expenditure (PCE), the Federal Reserve’s preferred inflation gauge, increased 0.3% in January, in line with the previous month. Year over year, PCE inflation rose 2.5%. Personal income rose 0.9% in January compared with 0.4% in the previous month. On the other hand, personal spending unexpectedly declined 0.2% in the same period.
The personal savings rate came in at 4.6% in January. According to Institute of Supply Management (ISM) reports, manufacturing PMI (purchasing managers’ index), which accounts for 10.3% of the economy, slipped to 50.3 last month from 50.9 in January. Any reading above 50 indicates an expansion in manufacturing activities.
Amid such puzzling market conditions, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Mutual funds like BlackRock Advantage Large Cap Growth Fund BMCAX, BlackRock Global Equity Market Neutral Fund BDMAX and BlackRock Large Cap Focus Value Fund MDBAX should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.
These funds have wide exposure in sectors such as industrial cyclical, energy, non-durable, technology, finance and retail, which are expected to perform well in the long term.
BlackRock mutual funds can be the preferred choice for investors who wish to diversify their portfolio but lack the necessary expertise in managing their own funds. Blackrock, founded in New York in 1988, is one of the leading investment, advisory and risk-management solutions companies. The fund house has a reputation as a trusted partner and long-term financial success.
BlackRock was founded as a standalone investment management company that focuses on providing asset and risk-management services to its clients. It is the world's largest asset management company and in the first quarter of 2024, its assets under management hit a record high of $10.5 trillion. Its assets under management span various asset classes like equity, fixed income, cash management, alternative investment and real estate.
Blackrock has more than 19,000 employees in more than 38 countries. The company manages assets for clients in North and South America, Europe, Asia, Australia, the Middle East, and Africa. Its clients include corporate, public and pension plans for various governments, insurance companies, third-party mutual funds, endowments, foundations, charities, corporations, official institutions, sovereign wealth funds, banks, financial professionals, and individuals worldwide.
We have thus selected three Blackrock mutual funds that have not only preserved investors’ wealth but also generated excellent returns in the past. These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.
Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
BlackRock Advantage Large Cap Growth Fund invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives such as futures contracts or options that have similar economic characteristics. BMCAX advisors consider large-cap companies as those with market cap within the range of companies listed on the Russell 1000 Growth Index at the time of purchase.
Raffaele Savi has been the lead manager of BMCAX since June 11, 2017. Most of the fund’s exposure was in companies like NVIDIA (10.3%), Apple (8.5%) and Microsoft (5.8%) as of Nov 30, 2024.
BMCAX’s three-year and five-year annualized returns are almost 12.8% and 16.8%, respectively. BMCAX has an annual expense ratio of 0.87%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
BlackRock Global Equity Market Neutral Fund invests most of its assets in equity and derivative securities of companies that are economically tied to developed markets, irrespective of market capitalization. BDMAX advisors adopt a market-neutral strategy by taking both long and short positions in a variety of developed market equity instruments that are denominated in either U.S. dollars or foreign currencies.
Raffaele Savi has been the lead manager of BDMAX since Dec. 20, 2012. Most of the fund’s exposure is in companies like Netflix (0.8%), Citigroup (0.7%) and Procter & Gamble (0.5%) as of Oct. 31, 2024.
BDMAX’s three-year and five-year annualized returns are almost 12.6% and 7.7%, respectively. BDMAX has an annual expense ratio of 1.59%.
BlackRock Large Cap Focus Value Fund seeks capital appreciation along with current income by investing most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics to such securities. MDBAX advisors primarily choose to invest in equity securities of undervalued companies.
Tony DeSpirito has been the lead manager of MDBAX since Nov. 14, 2019. Most of the fund’s exposure were in companies like Citi Group (3.4%), Wells Fargo (3.4%) and Comcast (3.2%) as of Sept. 30, 2024.
MDBAX’s three-year and five-year annualized returns are almost 8% and 10.6%, respectively. MDBAX has an annual expense ratio of 0.78%.
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