4 Best BlackRock Mutual Funds For September

Nitish Marwah

Tue, Sep 1, 2020, 5:21 AM 6 min read

BlackRock Inc. is one of the world’s leading asset management firms offering a range of risk management, strategic advisor and enterprise investment system services. With about $7.3 trillion worth of assets under management (excluding money market assets), as of Jun 30, 2020, it caters to institutional, intermediary and individual investors.

Its offerings range from individual and institutional separate accounts to mutual funds and other pooled investment options. BlackRock aims to provide a wide range of investment solutions to strike a 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.

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 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 14.4% in last three months alone

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 34.8% in YTD and has remained the best-performing sector so far this year among the 11 S&P 500 sectors.

4 Best Funds to Buy Now

Given such circumstances, we have highlighted four BlackRock mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (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 High Yield Bond Portfolio Investor A Shares BHYAX seeks to maximize total return that is consistent with high levels of income and prudent investment management. BHYAX invests majority of its assets in high-yield bonds. The fund may also invest about 30% of its assets in non-dollar denominated bonds of foreign issuers.

This Zacks sector – High Yield-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.

BHYAX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.94%, which is below the category average of 1.02%. The fund has three and five-year returns of 3.9% and 4.6%, respectively.

BlackRock Mid-Cap Growth Equity Portfolio Investor A Shares BMGAX fund aims for capital appreciation over the long term. The fund invests majority of its assets in equity securities of mid-cap U.S. companies, which the fund’s management believes would have above-average earnings growth potential. The fund mostly invests in common stocks, preferred stocks, convertible securities and other equity securities.

This Sector - Mid Cap Growth 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 21.7% and 16%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.

The fund carries a Zacks Mutual Fund Rank #2 and an annual expense ratio of 1.05%, which is below the category average of 1.16%.

BlackRock CoreAlpha Bond Fund Investor A Shares BCRAX 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 Sector - 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 5.9% and 4.4%, respectively. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.

The fund carries a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.54%, which is below the category average of 0.66%.

BlackRock Advantage Small Cap Growth Fund Investor A Shares CSGEX seeks long-term capital growth. The fund invests most of its assets in equity securities of small-capitalization companies, comparable in size to those in the Russell 2000Â® Index. CSGEX mostly invests in U.S. companies.

This Zacks sector – Small Cap Growth 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.

CSGEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.75%, which is below the category average of 1.22%. The fund has three and five-year returns of 10.9% and 7.6%, respectively.