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4 Blackrock Mutual Funds to Build a Solid Portfolio

Headquartered in New York City, Blackrock is the world's largest asset management company. Since its inception in 1988, the company has grown to be one of the leading investment, advisory, and risk-management solutions providers. Blackrock has more than 19,000 employees in more than 38 countries, and its assets under management span various asset classes like equity, fixed income, cash management, alternative investment and real estate.

BlackRock was founded as a standalone investment management company that focuses on providing asset and risk management services to clients. In the first quarter of 2024, the company’s assets under management hit a record $10.5 trillion.

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 unions, governments, insurance companies, third-party mutual funds, endowments, foundations, charities, corporations, official institutions, sovereign wealth funds, banks, financial professionals, and individuals worldwide.

Currently, inflation remains a major challenge for investors as the consumer price index (CPI), which is the most accepted gauge for inflation, rose for the third straight month in March. Deviating from the Fed’s expectation of a 2% inflation rate, CPI for the month of March rose to 3.5% year on year against 3.2% in February, mostly due to a rise in the cost of gasoline and shelter prices.

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In such a situation, an early interest rate cut by the Federal Reserve seems unlikely. High borrowing rates hurt corporate performance, which will impact stock prices, making it risky for investors.  Also, an unstable situation in the Middle East due to rising geopolitical tensions between Iran and Israel has affected the global supply chain.

Blackrock mutual funds can be a preferred choice for investors who wish to diversify their portfolio but lack the necessary expertise to manage their own funds amid such volatile market conditions. The fund house has a reputation as a trusted partner and has long-term financial success.

We have thus selected four Blackrock mutual funds that have not only preserved investors’ wealth but also generated excellent returns in the past. These funds have the majority of their investments in sectors such as technology, finance, retail and energy, which are expected to perform well in the long term.

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 an expense ratio of less than 1%. 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 BMCAX 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 Jun 11, 2017. Most of the fund’s exposure was in companies like Microsoft (13.4%), Apple (11.4%) and Amazon.com (4.9%) as of Nov 30, 2023.

BMCAX’s three-year and five-year annualized returns are almost 10.5% and 16.1%, 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 Sustainable Advantage Large-Cap BIRAX fund invests most of its assets along with borrowings, if any, in large-cap equity securities and derivatives that have similar economic characteristics. BIRAX advisors generally invest in common stocks, preferred stocks and convertible securities.

Raffaele Savi has been the lead manager of BIRAX since May 31, 2020. Most of the fund’s exposure is in companies like Apple (7.8%), Microsoft (6.9%) and Amazon.com (3.7%) as of Nov 30, 2023.

BIRAX’s three-year and five-year annualized returns are almost 10% and 14.7%, respectively. BIRAX has an annual expense ratio of 0.73%.

BlackRock Large Cap Focus Value Fund MDBAX 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 is in companies like Wells Fargo (3.5%), Citi Group (3.4%) and Kraft Heinz Company (3%) as of Dec 31, 2023.

MDBAX’s three-year and five-year annualized returns are almost 8.9% and 10.7%, respectively. MDBAX has an annual expense ratio of 0.79%.

BlackRock International Dividend Fund BREAX invests most of its assets, along with borrowings, if any, in dividend-paying equity securities and derivatives of foreign companies, irrespective of their market capitalization. BREAX advisors also invest a small portion of its net assets in global fixed-income securities, like corporate bonds, U.S. government debt securities, non-U.S. government and supranational debt securities, asset-backed securities, mortgage-backed securities, corporate loans, emerging market debt securities and non-investment grade debt securities.

Molly Greenen has been the lead manager of BREAX since Jan 11, 2022. Most of the fund’s exposure is in companies like Taiwan Semiconductor (4.9%), Novo Nordisk (3.8%) and Baker Hughes (3.5%) as of Nov 30, 2023.

BREAX’s three-year and five-year annualized returns are almost 5.7% and 7.8%, respectively. BREAX has an annual expense ratio of 0.92%.

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