Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios selected after careful research, global mutual funds offer a secure an attractive opportunity for investors looking at this category.
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.
Guinness Atkinson Global Innovators Fund (IWIRX) invests in companies that may gain from advances in fields of technology, globalism or novel management among others. The fund will invest in companies from developed stock markets including the United Kingdom or others in the European Union. It may also invest in emerging markets in Far East. A minimum of 40% of assets are invested in global securities. The global mutual fund has returned 33.68% over the last one year period.
The non-diversified fund has an expense ratio of 1.46% as compared to category average of 1.22%.
Hartford Global Growth A (HALAX) seeks capital appreciation. A minimum of 65% of assets are invested in securities of growth companies across the globe. A maximum of 25% of assets may be invested in companies primarily operating in emerging markets. The global mutual fund has returned 26.74% over the last one year period.
Matthew D. Hudson is the fund manager and has managed the fund since 2007.
MFS Equity Opportunities A (SRFAX) seeks capital growth. A lion's share of the fund's assets is invested in companies with higher than average earnings growth potential, i.e., growth companies. It may also invest in stocks which are priced below their underlying value or both value and growth companies. The global mutual fund has returned 31.44% over the last one year period.
As of January 2014, this fund held 47 issues with 3.65% of its assets invested in Fleetcor Technologies, Inc.
Polaris Global Value (PGVFX) invests in global companies irrespective of their market cap. This includes companies from emerging and developing nations. The fund focuses on investing in 15 different industries so that it has a well diversified portfolio. The global mutual fund has returned 29.47% over the last one year period.
The fund has an expense ratio of 1.04% as compared to category average of 1.35%.
American Funds New Economy A (ANEFX) seeks capital appreciation over the long term. It invests in common stock issued by companies with the ability to grow in the future. The firm may invest a major proportion of its assets in securities issued by foreign companies. These also include developing nations. The global mutual fund returned 36.06% over the last one year period.
Timothy D. Armour is the fund manager and has managed this fund since 1991.
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.
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