LARGE CAP STOCKS AND MUTUAL FUNDS

Though the majority of stocks are actually found in smaller caps, large cap stocks are better known and thus hog most Wall Street's attention. Then practice what you've learned with our free stock market simulation.

LARGE CAP STOCKS LIST

Take a look at these big kahuna stocks:

LARGE CAP MUTUAL FUNDS LIST

WHAT ARE LARGE CAP STOCKS?

Large cap refers to large market capitalization. “Large Cap” is a term used by the investment community. Cap size has changed over time, so it’s important to take scaling into consideration. What was considered a big cap stock thirty years ago is very much a small cap stock today. Commonly referred to as blue chip stocks, the largest publicly traded companies have a cap of $10 billion or greater. They’re usually the best-known companies traded in the public market (Apple, Walmart, Facebook etc). Wall Street's attention is concentrated heavily on these giants because it’s where the lucrative investment banking business resides – but the majority of stocks are actually found in the smaller (and riskier) caps.

Fun fact: AAPL recently shattered records by hitting a market cap of $775 billion!

WHAT ARE LARGE CAP MUTUAL FUNDS?

Large cap funds consist of companies with market caps of $8 billion or more. Mutual funds actually have restrictions on the level of ownership they can have in any one company (generally no more than 10% of their outstanding shares), so oftentimes these funds are forced to imitate a larger index. This usually forces the big cap funds to purchase large companies – the same companies that make up the major market indexes. There are lots of large cap   income funds   that are awesome for risk-averse investors. Investors with large time horizons tend to rely on more passive investing strategies. Large cap mutual funds would be appealing to these guys, as they usually aim to buy and hold. When picking between a small, medium or large cap mutual fund, make sure to take into consideration not only its size but also in which investing style the fund specializes.

FINDING THE BEST LARGE CAP STOCKS TO BUY

Blue chip stocks should be a part of any properly diversified portfolio. Many think that these massive stocks are too conservative, but they still see incredible amounts of trading and speculation on a daily basis. Even these huge companies see price fluctuations that cause investors to panic or cash out. Here are the main reasons why you want to get your hands on some large cap stocks:

Stability

Their size makes big cap companies relatively stable compared to smaller caps. They’re much less likely to go under, but their growth rate is sluggish in comparison. These companies are typically market leaders, so while it’s difficult for them to grow as quickly as up-and-comers, they are the much safer investment.

Dividends

Large cap stock companies are much more likely to pay dividends. They know the stock price isn’t likely to appreciate in value as quickly as a growth company’s. Big cap companies are super profitable, yes. But they simply don't have the same opportunity to grow. Their stock price remains relatively stagnant, so they pay back dividends in order to compensate their investors.

Safety

During the inevitable downturn in the business cycle is when large cap companies are extra hot. These whales aren’t necessarily immune to recessions, but they’re certainly more stable in the face of one. Dividend payments are also an attractive source of income when bond yields are low.

BEST STOCK NEWSLETTER OF 2020, September 27, 2020 UPDATE

TWO (2) of this year's Motley Fool Stock Picks Have Already QUADRUPLED, ONE has TRIPLED, and 2 more have DOUBLED in just 9 Months!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's almost 5 years and 114 stock picks. As of Friday, September 25, 2020, TWO of their 2020 stock recommendations have already quadrupled (ZM and TSLA), another one has tripled and 2 more have doubled (SHOP and NVTA all in just the first 9 months of 2020.

In addition, 7 of their 2019, 9 of their 2018, 9 of their 2017 and 12 of their 2016 picks have also doubled. Best of all, over the last 5 years the average stock pick is up 144%. That beats the SP500 by an average of 106%. And that's even accounting for all of this COVID mess that has wreaked havoc on most stocks. BUT, the Fool has done so well because they have quickly identified stocks this year that will perform well in the post-COVID world. THAT is how the Fool consistently does so well--they adapt and constantly pick stocks before everyone else realizes the opportunities.

• Zoom Video (ZM) – April 16, 2020 pick and it is already up 230%
• Shopify (SHOP) – April 2, 2020 pick and it is already up 177%
• Zoom Video (ZM) – March 19, 2020 pick re-recommended and it is already up 301%
• DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 33%
• NVTA picked February 6, 2020 is up 102%
• Tesla (TSLA) picked January 2, 2020 before the crash and it is up 373% 
• HubSpot (HUBS) picked December 5, 2019 and it is up 92%
• Netflix (NFLX) picked November 21, 2019 and it is up 55%
• Trade Desk (TTD) picked November 11, 2019 and up 146%
• Zoom Video originally picked Oct 3 and it is up 546%
• SolarEdge (SEDG) picked September 19, 2019 and it is up 125%

Now, no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super profitable. They also claim that since inception, their average pick is up 529% and now we believe them. Many analysts are saying that we have passed the bottom of this COVID crisis and "certain" stocks will recover quickly and be the new leaders. So make sure you have the right stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link. 

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here's the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it's too late)