Large-Cap Value Fund
What is it? A mutual fund that invests in the undervalued stocks of large companies. According to Morningstar, large-cap funds invest in companies with market capitalization of more than $11 billion. Other organizations may use different definitions. Large-cap funds typically are less volatile than mid-cap and small-cap funds because large companies are more established and more predictably successful than smaller companies. Large companies also are more likely to pay dividends. Value fund managers buy stocks that have relatively low P/E ratios or are undervalued by other objective measures, such as price-to-book ratios. The underlying company must be fundamentally strong even though the stock is low.Added By: Kylie
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