In the dynamic and ever-changing world of investment opportunities, blended mutual funds have emerged as a powerful tool for investment to maximize their potential returns while minimizing risk. By blending the top features from a range of mutual fund categories, these innovative investment vehicles offer a diverse portfolio that can weather market fluctuations and capitalize on various market conditions.
Blend mutual funds aim to create the perfect balance between growth and stability via a combination of assets from various categories, like fixed income, alternative investments and equity. Spreading their investments through various sectors and asset types, blend mutual funds can potentially upsurge their overall returns and decrease exposure to certain risks. This convenient and efficient approach is made possible by accessing a variety of asset classes through a single fund and is crucial to successful diversification.
Blend mutual funds can serve diverse investment goals —ranging from preservation of capital to aggressive growth strategies. Through diversification across several asset classes, these funds can be personalized to satisfy distinctive investment objectives and risk tolerances.
Additionally, blend mutual funds suit various investment goals, from conservative capital preservation to aggressive growth strategies. By diversifying across asset classes, these funds can be customized to align with different risk tolerances and investment objectives. The flexibility offered by these funds enables the formation of a well-rounded portfolio that serves the precise financial targets of an individual.
In conclusion, blend mutual funds offer investors a compelling investment option by combining the strengths of various asset classes in a single fund. With diversification, active management, and accessibility at their core, these funds provide an effective way to enhance returns while managing risk.
Investing in blend mutual funds seems judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have, thus, chosen three blended mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided comparatively strong performance along with lower fees.
DFA US Large Company Portfolio DFUSX aims to achieve a performance that closely approximates the investment performance of the S&P 500 Index, both in terms of the price of the fund's shares and its total investment return.
Joseph F. Hohn has been the lead manager of DFUSX since Feb 27, 2017. Most of the fund’s holdings were in companies like APPLE INC (6.3%), MICROSOFT CORP (5.4%) and AMAZON.COM INC (2.7%) as of Jan 31, 2023.
DFUSX’s 3-year and 5-year annualized returns are 12.9% and 11%, respectively. Its net expense ratio is 0.08% compared to the category average of 0.84%. DFUSX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Mid-Cap Stock Fund FMCSX invests most of its net assets in common stocks of domestic and foreign companies with market capitalization similar to those listed on the Russell Midcap Index or the S&P MidCap 400 Index. FMCSX advisors also invest in large and small-cap companies with growth or value characteristics or sometimes both.
Nicola Stafford has been the lead manager of FMCSX since Jul 4, 2017. Most of the fund’s holdings were in companies like HESS CORP (1.9%), ARCH CAPITAL GROUP LTD (1.8%) and MOLINA HEALTHCARE INC (1.7%) as of Jan 31, 2023.
FMCSX’s 3-year and 5-year annualized returns are 14.9% and 8.2%, respectively. Its net expense ratio is 0.87% compared to the category average of 0.94%. FMCSX has a Zacks Mutual Fund Rank #1.
PGIM Jennison Small Company Fund PJSQX invests most of its assets in equity securities of small companies that are undervalued. PJSQX advisor employs a combination of value and growth styles for selecting stocks for investment.
Jonathan M. Shapiro has been the lead manager of PJSQX since Jul 10, 2018. Most of the fund’s holdings were in companies like TARGA RESOURCES (2.5%), GAMING & LEISURE PROPERTI (2.5%) and PDC ENERGY INC (2.3%) as of Jan 31, 2023.
PJSQX’s 3-year and 5-year annualized returns are 17% and 7%, respectively. Its net expense ratio is 0.69% compared to the category average of 1.21%. PJSQX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
