Top 5 Global Mutual Funds (Dec. 2010)

The presence of both domestic and foreign stocks in a portfolio provides superior returns at lower risk than holding only domestic stocks. Further, the importance of US stock markets has declined as has their relative share of global stock market capitalization. This is why investors cannot continue to restrict themselves to investing in domestic securities alone. Global mutual funds are the best possible method to invest in this particular manner. This is because they hold a wide array of domestic and foreign stocks, significantly reducing the associated 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.

Oppenheimer Global Opportunities A (OPGIX) invests in a wide range of equity securities worldwide. The fund focuses on acquiring stocks, but may also purchase debt securities. Not more than 25% of its assets may be invested in securities with lower ratings. The global mutual fund returned 13.6% over the last one year period.

As of September 2010, this global mutual fund held 92 issues, with 9.81% of its total assets invested in Nektar Therapeutics Inc

Fidelity Worldwide (FWWFX) seeks capital appreciation. The fund invests in at least three countries at any given point in time, including the U.S. it focuses on investing in mature economies located in North America, the Pacific Basin and Europe. The global mutual fund has a ten year annualized return of 4.75%.

William Kennedy is the fund manager has managed this global mutual fund since 2006.

Invesco Global Growth A (AGGAX) invests at least 65% of its assets in domestic and foreign equity securities. The fund focuses on investing in large and mid-cap companies. At least 20% of its assets are used to purchase dollar denominated securities. The global fund has a five year annualized return of 5.5%.

The global fund has a minimum initial investment of $1,000 and an expense ratio of 1.79% compared to a category average of 1.52%.

Hartford Global Growth A (HALAX) seeks long-term capital growth. At least 65% of the fund’s assets are used to purchase common stocks of growth companies worldwide. Up to 25% of its assets may be invested in companies whose primary business operations are conducted in emerging markets. This global fund returned 8.98% over the last one year period.

Matthew Hudson is the fund manager has managed this global mutual fund since 2006.

Harding Loevner Global Equity Advisor (HLMGX) invests the majority of its assets in companies located in the U.S. as well as foreign countries. The fund primarily invests in common stock, convertible securities, rights and warrants. It also invests in companies that invest in these categories of securities. The fund has a ten year annualized return of 3.58%.

The global fund has a minimum initial investment of $5,000 and an expense ratio of 1.25% compared to a category average of 1.52%.

To view the Zacks Rank and past performance of all global mutual funds, then click here.

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