Large cap funds are better than small or mid cap funds for risk-averse investors. These funds have exposure to large cap stocks, with a long-term performance history and more stability than what mid cap or small caps offer. Companies with market capitalization of more than $10 billion are generally considered large cap. However, due to their significant international exposure, large cap companies might be affected by a global downturn.

Meanwhile, investors looking for a bargain, i.e., stocks at a discount, are mostly interested in in value funds, which pick stocks that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity) and pay out dividend. In the long run, value stocks are expected to outperform growth ones across all asset classes and are less vulnerable to trending markets. However, investors interested in choosing value funds for yield, should check the mutual fund yield as not all value funds comprise solely companies that primarily use their earnings to pay out dividend.

Below we share with you four top-rated, large-cap value mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of large-cap value funds.

Vanguard Equity-Income (VEIPX - Free Report) seeks to provide a high level of income and growth of capital for the long run. VEIPX invests heavily in mid cap and large cap equity securities which generally provide above average dividend income. Companies with growth potential are also considered for investment. Vanguard Equity-Income returned 15.6% in the last one year.

VEIPX has an expense ratio of 0.26% compared with the category average of 0.74%.

Transamerica Large Cap Value I2 (TWQZX - Free Report) invests the major portion of its assets in securities of large-cap companies that are believed to be undervalued. TWQZX seeks appreciation of capital for the long run by focusing on securities of large cap companies included on the Russell 1000 Value Index. The fund may also invest around one-fifth of its assets in foreign companies. Transamerica Large Cap Value I2 returned 20.5% in the last one year.

Jack Murphy is one of the fund managers of TWQZX since 2012.

TIAA-CREF Large-Cap Value Premier (TRCPX - Free Report) seeks return over the long run primarily through growth of capital. TRCPX invests the lion’s share of its assets in equity securities of large-cap companies, which are expected to be undervalued. The fund invests in companies as defined by the fund's benchmark index, the Russell 1000 Value Index. TIAA-CREF Large-Cap Value Premier returned 21.7% in the last one year.

TRCPX has an expense ratio of 0.54% compared with the category average of 0.74%.

Principal LargeCap Value J (PVLJX - Free Report) invests the majority of its assets in equity securities of large-cap companies from the Russell 1000 Value Index. According to the index, large-cap companies are those whose market-cap ranges between $394.9 million and $634.4 billion. PVLJX seeks capital appreciation for the long run.Principal LargeCap Value J returned 12.1% in the last one year.

As of February 2017, PVLJX held 76 issues, with 5.68% of its assets invested in JPMorgan Chase & Co.