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5 Top-Rated Global Mutual Funds Set to Outperform - Mutual Fund Commentary

The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility. However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of risk.

Below we will share with you 5 top rated global mutual funds . Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds .

Thornburg Global Opportunities A (THOAX) seeks capital growth over the long run. It invests in different types of securities which may include common stocks, REITs and other equities all over the globe. It invests in securities irrespective of their market capitalizations including those with market cap below $500 million. The global mutual fund returned 28.9% over the last one year period.

The fund has an expense ratio of 1.46% as compared to category average of 1.33%.

T. Rowe Price Global Stock (PRGSX) invests in prominent companies across the globe. The fund largely invests in diversified industries from developed nations and also invests a small portion in emerging economies. The fund invests in a minimum of five countries including the U.S. A minimum of 40% of its assets are invested in companies outside the U.S. The global mutual fund returned 25.5% over the last one year period.

As of June 2014, this fund held 86 issues with 3.29% of its assets invested in Boeing Co.

Guinness Atkinson Global Innovators (IWIRX) seeks capital appreciation over the long run. The fund invests in equity securities of companies that are believed to be poised for advances in technology, communications, globalism or innovative management fields. It invests in companies from developed stock markets across the world and in emerging economies in the Far East. The non-diversified global mutual fund returned 32.4% over the last one year period.

The fund has an expense ratio of 1.46% as compared to category average of 1.2%.

Invesco Global Small & Mid Cap Growth A (AGAAX) invests a lion's share of its assets in small and mid-cap companies throughout the world. It invests in a minimum of three countries. A maximum of 35% of its assets may be invested in firms from emerging economies. The global mutual fund returned 22.2% over the last one year period.

As of June 2014, this fund held 100 issues with 3.34% of its assets invested in DCC PLC.

Forward Global Infrastructure A (KGIAX) seeks capital growth and current income. The fund invests largely in companies from the infrastructure domain. It invests in a minimum of five countries. A minimum of 40% of its assets is invested in foreign companies including emerging and frontier nations. The non-diversified global mutual fund returned 24.2% over the last one year period.

Aaron Visse is the fund manager and has managed the fund since 2007.

To view the Zacks Rank and past performance of all global mutual funds, investors can click here to see the complete list of funds .

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center .

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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.


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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