3 Goldman Sachs Mutual Funds to Build a Solid Portfolio

Goldman Sachs Asset Management (GSAM) is a world-renowned investment management company. GSAM has provided portfolio management, design and advisory services to individual and institutional investors worldwide since 1988. As of Dec 31, 2022, GSAM had $2 trillion in assets under supervision.

GSAM strategies cover various asset classes, industries and geographies. The company offers investment solutions, including fixed income, money markets, public equity, commodities, hedge funds, private equity and real estate, through proprietary strategies, strategic partnerships and open architecture programs.

GSAM has more than 2,000 employees across 31 offices all over the world. The company has a team of more than 800 investment professionals who capitalize on Goldman Sachs’ technology, risk-management skills and market insights. The fund house provides opportunities to individuals who wish to increase their wealth through various strategic investment funds.

The fund house has a reputation as a trusted partner and has long-term financial success. Uncertainties over the Federal Reserve’s interest decision could impact corporate performance. Investors who wish to diversify in various asset classes but lack professional expertise in managing funds can consider Goldman Sachs mutual funds.

The Federal Reserve, in its last policy meeting, has kept the overnight interest rate unchanged in the range of 5.25-5.5%. Fed Chair Jerome Powell expects inflation to gradually decline to the Fed’s target inflation of 2% irrespective of the spike in recent months. Though, the central bank hinted three rate cuts in 2024 despite sticky inflation, the time line for the same is still unclear.

Amid such uncertainties, we have selected three Goldman Sachs mutual funds that have not only preserved investors’ wealth but also generated excellent returns amid market uncertainties. These funds have the majority of their investments in sectors such as energy, technology, finance, retail trade, utilities and industrial cyclical, which will help in long-term growth and preservation of wealth.

These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Goldman Sachs MLP Energy Infrastructure Fund GMNPX fund invests most of its assets, along with borrowings, if any, in equity or fixed-income securities issued by domestic and foreign energy infrastructure companies. GMNPX advisors may also invest a small portion of the fund’s net assets in non-energy sectors.

Christopher A Schiesser has been the lead manager of GMNPX since Jan 10, 2023. Most of the fund’s exposure was in companies like Energy Transfer (14.6%), Enterprise Products Partners (12.2%) and MPLX (11.5%) as of Nov 30, 2023.

GMNPX’s three-year and five-year annualized returns are almost 27.1% and 8.3%, respectively. GMNPX has an annual expense ratio of 1.06%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Goldman Sachs Large Cap Growth Insights Fund GMZPX fund invests most of its assets, along with borrowings, if any, ina broadly diversified portfolio of large-cap domestic and foreign equity investments that are traded in the United States. GMZPX advisors may also invest in fixed-income securities.

Sharanya Srinivasan has been one of the lead managers of GMZPX since Feb 28, 2024. Most of the fund’s exposure was in companies like Microsoft (12.6%), Apple (11%) and Amazon.com (6.8%) as of Oct 31, 2023.

GMZPX’s three-year and five-year annualized returns are almost 11% and 15.9%, respectively. GMZPX has an annual expense ratio of 0.58%.

Goldman Sachs Focused Value GGYPX fund invests most of its assets along with borrowings, if any, in a diversified portfolio of common stocks, preferred stocks and other instruments with equity characteristics. GGYPX advisors choose to invest in quality companies that are undervalued with competitive advantages over the industry peers and have sustainable growth potential.

Kevin Martens has been the lead manager of GGYPX since Dec 26, 2019. Most of the fund’s exposure was in companies like Exxon Mobil (5.6%), Salesforce (5.3%) and Ameren (4.8%) as of Nov 30, 2023.

GGYPX’s three-year and five-year annualized returns are almost 10.8% and 12.5%, respectively. GGYPX has an annual expense ratio of 0.70%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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