3 All Cap Value Mutual Funds To Beat Peers

Value stocks are stocks that tend to trade at a price that is lower than its fundamentals (i.e. earnings, book value, and debt-equity). It is common for some investors to invest in value funds for the income or yield. However, not all value funds are comprised solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund’s shares.

Below we will share with you 3 top all cap value mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all cap value funds, investors can click here to see the complete list of funds.

T. Rowe Price Value (TRVLX - MF report) seeks long term capital growth. The fund invests a minimum of 65% of its assets in undervalued companies. Though it focuses on acquiring common stocks of large cap companies, it may also invest in small and mid cap companies. It may also invest in non-US companies besides investing in domestic firms. The value mutual fund has a three-year annualized return of 19.5%.

Mark S. Finn is the fund manager and has managed this fund since 2009.

Fidelity Advisor Value A (FAVFX - MF report) generally invests in mid cap companies that Fidelity Management & Research Company (FMR) consider as undervalued depending on factors including impressive earnings and asset growth prospects. It focuses on acquiring common stocks and may also invest in large and small cap companies. It invests in companies throughout the globe. The value mutual fund has a three-year annualized return of 19.2%.

As of February 2015, this fund held 301 issues with 1.50% of its assets invested in Sempra Energy.

Columbia Diversified Equity Income A (INDZX - MF report) seeks current income. The fund invests a lion’s share of its assets equities of companies that pay a dividend. It invests a maximum of one-fourth of its assets in non-U.S. issuers. It may concentrate on acquiring equity securities of companies from a particular sector. The value mutual fund has a three-year annualized return of 14.7%.

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