One of the world’s premier asset management firms, BlackRock Inc. offers a range of risk management, strategic advisor and enterprise investment system services. With over $7.8 trillion worth of assets under management (as of Sep 30, 2020), it caters to institutional, intermediary and individual investors through a wide range of products and services.
These offerings include individual and institutional separate accounts, mutual funds and other pooled investment options. BlackRock aims to provide a wide range of investment solutions to its clients, helping them strike the right balance between risk and opportunities.
Furthermore, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Let’s consider the mutual funds from BlackRock for stunning returns.
Awards and Recognitions
According to Forbesand JUST Capital, BlackRock has been named as one of America’s Most JUST Companies for 2020. Notably, the company also ranked #1 in the capital markets industry this year.
The 2020 list of America’s Most JUST Companies celebrates those American companies that outperform their peers in the Russell 1000. The list decided on how a company deals with burning issues like fair pay, ethical leadership, work-life balance, equal opportunity, environmental impact, as well as delivering return on investment to shareholders. Needless to say, Blackrock stood out in all of the aforementioned categories.
BlackRock’s Performance So Far in 2020
The fund family has a history of providing upbeat returns. The initial investment of the majority of BlackRock mutual funds ranges from $0 to $1,000. Further, BlackRock Advantage Small Cap Core Fund Investor A Shares (BDSAX – Free Report) has consistently remained one of the best-performing mutual funds from the BlackRock family. The fund has posted solid gains over the past three years.
BDSAX, which invests the majority of its assets in securities of those companies that are included in or have market capitalization similar to the securities comprising the Russel 2000 Index, has returned 17.3% in the past last six months.
BlackRock invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the issuer invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 36.4% in YTD and has remained the best-performing sector so far this year among the 11 S&P 500 sectors.
3 Best Funds to Buy Now
Given such circumstances, we have highlighted three BlackRock mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
BlackRock New York Municipal Opportunities Fund Investor C Shares (MFNKX – Free Report) seeks to provide income that is exempted from Federal income tax as well as New York State and New York City personal income taxes. The fund invests the lion’s share of its assets in investment grade New York municipal bonds. MFNKX maintains average portfolio duration between zero and ten years.
This Zacks Muni-Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
MFNKXhas three and five-year returns of 3.9% and 4.6%, respectively.
BlackRock International Fund of BlackRock Series, Inc. Investor A Shares (MDILX – Free Report) aims for capital appreciation over the long term. The fund invests majority of its assets in stocks of companies located outside the United States. MDILX invests a minimum of 75% of its total assets in global equity securities of any market capitalization. Such securities are selected for their above average return potential.
This Non US-Equity product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the three and five-year benchmarks are 2.9% and 5.9%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 1.05%, which is below the category average of 1.16%.
BlackRock CoreAlpha Bond Fund Investor A Shares (BCRAX – Free Report) aims to offer a combination of income and capital appreciation. This is a “feeder” fund that invests all its assets in the Master Portfolio. BCRAX invests the majority of its assets in bonds. The fund may also invest in bonds issued by companies located in foreign countries including those in emerging markets.
This Diversified Bonds product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the three and five-year benchmarks are 5.2% and 4%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund has an annual expense ratio of 0.54%, which is below the category average of 0.66%.
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