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The U.S. macroeconomic landscape remains broadly favorable. However, growth has moderated compared with recent years. The performance has been underpinned by resilient demand, strong consumer spending, and ongoing technological innovation, particularly in artificial intelligence and machine learning, which has enhanced productivity across key sectors. Nonetheless, slowing jobs growth, persistent inflation, trade policy uncertainty, and global economic challenges call for a degree of caution.

The job market is showing signs of cooling due to softer hiring, rising unemployment and narrowing job-opening gaps. To support the labor market and stimulate growth, the Federal Reserve delivered three quarter-basis-point interest rate cuts over the past three months to bring down the overnight borrowing rate to the range of 3.50-3.75%. The Fed is open to further interest rate adjustments in 2026, since inflation is in a downtrend and hovering near the 2% target.

Against this backdrop, risk-averse investors seeking a balance of growth and value may opt for investing in large-cap blend mutual funds, such as Fidelity Mega Cap Stock Fund (FGRTX - Free Report) , T. Rowe Price U.S. Equity Research Fund (PRCOX - Free Report) and Northern Large Cap Core (NOLCX - Free Report) as their major holdings to achieve their objective.

Why Invest in Large-Cap Blend Mutual Funds?

Large-cap funds usually provide a safer option for risk-averse investors. When compared to small-cap and mid-cap funds, blend funds provide significant exposure to both growth and value stocks. Blend funds, also known as “hybrid funds,” aim for value appreciation by capital gains. It owes its origin to a graphical representation of a fund’s equity-style box.

Meanwhile, large-cap blend funds have exposure to large-cap stocks, providing long-term performance history and assuring more stability than what mid or small caps offer. Generally, companies with a market capitalization of more than $10 billion are considered large-cap firms. However, due to their significant international exposure, large-cap companies might be affected during a global downturn.

We have thus selected three large-cap blend mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, and carry a low 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.

Fidelity Mega Cap Stock Fund invests most of its net assets in common stocks of domestic and foreign mega market capitalization companies with a market cap similar to the companies listed on the Russell Top 200 Index or the S&P 100 Index at the time of purchase. FGRTX advisors generally invest in growth or value stocks or a combination of both characteristics. FGRTX advisors choose to invest in companies based on fundamental analysis factors such as financial condition, industry position, as well as market and economic conditions.

Matthew W. Fruhan has been the lead manager of FGRTX since April 9, 2009. Most of the fund’s exposure is in companies like Microsoft (7.7%), NVIDIA (7.6%) and Wells Fargo (5.6%) as of June 30, 2025.

FGRTX’s three-year and five-year annualized returns are nearly 23.3% and 19.2%, respectively. FGRTX has an annual expense ratio of 0.58%.

T. Rowe Price U.S. Equity Research Fund invests most of its net assets in a portfolio of stocks where the weight of each sector and industry is approximately the same as in the S&P 500 Index. PRCOX advisors prefer to invest in large-capitalization domestic companies but can also invest in foreign issues with a similar objective.

Jason B. Polun has been the lead manager of PRCOX since Jan. 1, 2015. Most of the fund’s exposure is in companies like NVIDIA (7.5%), Microsoft (7.3%) and Apple (5.4%) as of June 30, 2025.

PRCOX’s three-year and five-year annualized returns are 21.6% and 15.6%, respectively. PRCOX has an annual expense ratio of 0.46%.

Northern Large Cap Core fund invests most of its net assets in a broadly diversified portfolio of domestic and foreign large-cap companies that are traded in the United States. NOLCX advisors consider large-cap companies as those with market capitalization within the range of the companies listed on the Russell 1000 Index.

Reed A. LeMar has been the lead manager of NOLCX since July 31, 2024. Most of the fund’s exposure is in companies like NVIDIA (8.3%), Microsoft (7.3%) and Apple (6.9%) as of Sept. 30, 2025.

NOLCX’s three-year and five-year annualized returns are 21.5% and 17.4%, respectively. NOLCX has an annual expense ratio of 0.45%.

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