Large-company stock funds led the mutual fund investment market in 2014, according to Kiplinger?s. Two mutual fund companies, Biondo Focus and Oakmark Select, topped the list of large-company stock funds.
Mutual funds divide their investment options into multiple categories. For example, Biondo Focus and Oakmark Select are mutual funds that buy individual shares of a company?s stock and package those stocks into one investment instrument. Investors then purchase shares of the investment instrument with the knowledge that multiple stocks make up the investment, which creates a diversified portfolio, explains Investopedia. Large-company stock funds buy individual shares of well-known companies who pay dividends and have a large market capitalization, notes Kiplinger?s.