3 Blackrock Mutual Funds for Long-Term Gains

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So far in 2024, a sticky inflation rate, slowing economic growth and uncertainty over the initiation of interest rate cuts by the Federal Reserve remain major concerns for investors. After a gradual decline toward the Fed’s ambitious inflation target of 2% last year, the consumer price index (CPI), which is the most accepted gauge for inflation, remained high at 3.4% year over year for the month of April. Also, the reading of the Producer Price Index at 0.5% came in above the consensus estimate of 0.3%, confirming persistent inflationary pressure.

The U.S. GDP growth rate from January to March 2024, was the weakest since the spring of 2022. The GDP growth rate in the said period was 1.3% compared to the 3.4% in Q4 of 2023. The decline in the pace of consumer spending in the first quarter at 2% year-over-year against the consensus estimate of 2.5% signifies a slowdown in the broader economy due to high interest rates and persistent inflation.

It is important for the Fed to strike a balance between the desired inflation target and the falling growth rate to make a soft landing for the economy. High borrowing rates hurt corporate performance, which will impact stock prices, making it risky for investors to take investment decisions in such volatile markets.

Given the current situation, Blackrock mutual funds can be a 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 the year 1988, is one of the leading investments, advisory, and risk-management solutions companies. The fund house has a reputation as a trusted partner and has long-term financial success.

BlackRock was founded as a standalone investment management company that focuses on providing asset and risk-management services to 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. The majority of their investments is in sectors such as technology, finance and retail, which are expected to perform well in the long term.

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 MRLRX fund invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics. MRLRX advisors generally invest in common stocks, preferred stocks and convertible securities with characteristics similar to the stock listed on the Russell 1000 Index.

Raffaele Savi has been the lead manager of MRLRX since Jun 11, 2017. Most of the fund’s exposure is in companies like Microsoft (7.8%), Apple (6.6%), and NVIDIA (5%) as of Feb 29, 2024.

MRLRX’s three-year and five-year annualized returns are almost 6.5% and 11.9%, respectively. MRLRX has an annual expense ratio of 0.98%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

BlackRock Large Cap Focus Value MRBVX 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. MRBVX advisors primarily choose to invest in equity securities of undervalued companies.

Tony DeSpirito has been the lead manager of MRBVX since Nov 14, 2019. Most of the fund’s exposure was in companies like Wells Fargo (3.5%), Citi Group (3.4%) and Kraft Heinz Company (3%) as of Dec 31, 2023.

MRBVX’s three-year and five-year annualized returns are almost 5.9% and 8.9%, respectively. MRBVX has an annual expense ratio of 1.17%.

BlackRock Sustainable Advantage Large-Cap BIRCX fund invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics. BIRCX advisors generally invest in common stocks, preferred stocks and convertible securities.

Raffaele Savi has been the lead manager of BIRCX since May 31, 2020. Most of the fund’s exposure is in companies like Microsoft (7.7%), Apple (6.2%) and NVIDIA (4.7%) as of Feb 29, 2024.

BIRCX’s three-year and five-year annualized returns are almost 5.8% and 11.9%, respectively. BIRCX has an annual expense ratio of 1.48%.

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