0000844779 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:C000118599Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member rr:AfterTaxesOnDistributionsAndSalesMember bf1:C000118599Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member rr:AfterTaxesOnDistributionsMember bf1:C000118599Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:C000118600Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:C000118601Member 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:ConcentrationRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:ConvertibleSecuritiesRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:EquitySecuritiesRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:FTSENareitAllEquityREITsIndexMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:InvestmentStyleRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:MarketRiskAndSelectionRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:OperationalAndTechnologyRisksMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:PreferredSecuritiesRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:RealEstateRelatedSecuritiesRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:REITInvestmentRiskMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member rr:RiskLoseMoneyMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member rr:RiskNondiversifiedStatusMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:RiskOfInvestingInTheUnitedStatesMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:Russell1000IndexMember 2025-05-30 2025-05-30 0000844779 bf1:S000038448Member bf1:SmallAndMidCapitalizationCompanyRiskMember 2025-05-30 2025-05-30 iso4217:USD pure 0000844779 false 485BPOS 2025-01-31 0.1329 0.0353 0.0348 0.0737 0.0591 -0.0328 0.2753 -0.0443 0.4586 -0.2774 2025-05-28 N-1A BLACKROCK FUNDS 2025-05-30 2025-05-30 Fund OverviewKey Facts About BlackRock Real Estate Securities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Real Estate Securities Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Trust”), is to seek total return comprised of long-term growth of capital and dividend income.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">other fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. More information about these and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other discounts is available from your Financial Intermediary and in the “Details About the Share Classes” and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Intermediary-Defined Sales Charge Waiver Policies” sections on pages </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">22</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A-1</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, respectively, of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prospectus and in the “Purchase of Shares” section on page </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">II-94</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> of Part II of the Fund’s Statement of Additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Information.</span></div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. 25000 Shareholder Fees (fees paid directly from your investment) 0.0525 0 0 0 0.0100 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0075 0.0075 0.0075 0.0025 0.0100 0 0.0025 0.0035 0.0030 0.0125 0.0210 0.0105 -0.0025 -0.0035 -0.0030 0.0100 0.0175 0.0075 A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. June 30, 2026 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 622 877 1153 1936 278 624 1097 2185 77 304 550 1255 You would pay the following expenses if you did not redeem your shares: 178 624 1097 2185 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">59</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.59 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment purposes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(measured at the time of purchase) in a portfolio of equity investments in issuers that are primarily engaged in or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related to the real estate industry inside the United States. An issuer is primarily engaged in or related to the real </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">estate industry if it derives at least 50% of its gross revenues or net profits from the ownership, development, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">construction, financing, management or sale of commercial, industrial or residential real estate or interests therein or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">has 50% of its assets in real estate or real estate interests. The Fund may invest up to 20% of its net assets plus any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">borrowings for investment purposes (measured at the time of purchase) in a portfolio of equity investments in issuers </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that are primarily engaged in or related to the real estate industry outside the United States and fixed-income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments, such as government, corporate and bank debt obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Real estate industry companies may include real estate investment trusts (“REITs”), REIT-like structures, or real estate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">operating companies whose businesses and services are related to the real estate industry. The Fund primarily buys </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">common stock but also can invest in preferred stock and convertible securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund concentrates its investments in securities of issuers in the real estate industry.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended.</span></div> Under normal conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) in a portfolio of equity investments in issuers that are primarily engaged in or related to the real estate industry inside the United States. Principal Risks of Investing in the Fund You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Real Estate-Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The main risk of real estate-related securities is that the value of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying real estate may go down. Many factors may affect real estate values. These factors include both the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">property type, the Fund will be particularly subject to the risks associated with that area or property type. Many </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commenced development on properties and may develop additional properties in the future. Real estate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development involves significant risks in addition to those involved in the ownership and operation of established </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dependency and defaults by borrowers or tenants.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">REIT Investment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Investments in REITs involve unique risks. REITs may have limited financial resources, may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code of 1986, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), which allows REITs to reduce their corporate taxable income for dividends paid to their </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Concentration Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund’s strategy of concentrating in the real estate industry means that its performance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will be closely tied to the performance of a particular market segment. The Fund’s concentration in these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies may present more risks than if it were broadly diversified over numerous industries and sectors of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economy. A downturn in these companies would have a larger impact on the Fund than on a mutual fund that does </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not concentrate in such companies. At times, the performance of these companies will lag the performance of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other industries or the broader market as a whole. In addition, the real estate industry has historically experienced </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantial price volatility.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Convertible Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The market value of a convertible security performs like that of a regular debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Investment Style Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Under certain market conditions, value investments have performed better during periods </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of economic recovery. Therefore, this investment style may over time go in and out of favor. At times when the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment style used by the Fund is out of favor, the Fund may underperform other equity funds that use different </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment styles.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Non-Diversification Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is a non-diversified fund. Because the Fund may invest in securities of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">individual issuer than a fund that invests more widely.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Preferred Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">larger companies.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small and Mid-Capitalization Company Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Companies with small or mid-size market capitalizations will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">normally have more limited product lines, markets and financial resources and will be dependent upon a more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited management group than larger capitalized companies. In addition, it is more difficult to get information on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller companies, which tend to be less well known, have shorter operating histories, do not have significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ownership by large investors and are followed by relatively few securities analysts.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 1000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">FTSE Nareit All Equity REITs Index. The FTSE Nareit All Equity REITs Index is relevant to the Fund because it has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics similar to the Fund’s investment strategy. To the extent that dividends and distributions have been paid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and distributions. As with all such investments, past performance (before and after taxes) is not an indication of future </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">However, the table includes all applicable fees and sales charges. If BlackRock and its affiliates had not waived or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information on the Fund’s performance, including its current net asset value, can be obtained by visiting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">www.blackrock.com or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 1000® Index and the FTSE Nareit All Equity REITs Index. The FTSE Nareit All Equity REITs Index is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and sales charges. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS BlackRock Real Estate Securities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 18.19% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -24.07% (quarter ended March 31, 2020). The year-to-date return as of March 31, 2025 was 2.09%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.1819 2023-12-31 lowest return -0.2407 2020-03-31 year-to-date return 2025-03-31 0.0209 For the periods ended 12/31/24Average Annual Total Returns -0.0190 0.0228 0.0497 -0.0261 0.0154 0.0365 -0.0098 0.0150 0.0337 0.0180 0.0261 0.0491 0.0379 0.0365 0.0581 0.2451 0.1428 0.1287 0.0492 0.0329 0.0583 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 38, BlackRock has contractually agreed to waive the management fee of the Fund with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 38, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 1.00% (for Investor A Shares), 1.75% (for Investor C Shares) and 0.75% (for Institutional Shares) of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. The Fund has added this broad-based index in response to new regulatory requirements. There is no CDSC on Investor C Shares after one year.