Investors can no longer ignore the attractions of global equity markets and limit themselves to domestic investments. Though U.S equity markets retain their global significance, they no longer command the importance which they did in the past. Research has also shown that a prudent combination of foreign and domestic investments provide better results and aid in reducing risk. With their analytical prowess and expert management global mutual funds provide investors with a unique opportunity to harness the strengths of both local and international financial markets.
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.
Fidelity Advisor Global Capital Appreciation A (FGEAX) seeks capital appreciation over the long term. The fund invests a large proportion of its assets in domestic and foreign equity securities, focusing on common stocks. The global mutual fund returned 22.26% over the last one year period.
Tom Allen is the fund manager and has managed this global mutual fund since 2010.
Invesco Global Small & Mid Cap Growth A (AGAAX) invests the majority of its assets in small and mid-sized companies with the potential for superior growth. Not more than 35% of its assets may be utilized to purchase emerging market securities. At least 20% of its assets are invested in dollar denominated securities. The global mutual fund has a ten year annualized return of 4.99%.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.61% compared to a category average of 1.52%.
ING Global Value Choice A (NAWGX) seeks capital growth over the long term. The fund invests at least 65% of its assets in different countries, including the U.S. The majority of its assets are invested in stocks, depository receipts, derivatives and convertible securities. The global mutual fund has a three year annualized return of 6.37%.
David B. Iben is the fund manager and has managed this global mutual fund since 2006.
Templeton Global Smaller Companies A (TEMGX) invests the majority of its assets in equity securities of small companies located across the world. The fund invests in at least three different countries including the U.S. The global mutual fund returned 21.12% over the last one year period and has a ten year annualized return of 8.77%.
As of September 2010, this global mutual fund held 83 issues, with 3.14% of its total assets invested in Dah Sing Financial Holdings Ltd.
Nuveen Tradewinds Global All-Cap A (NWGAX) seeks capital appreciation. The fund invests 40% to 75% of its assets in foreign equity securities. Not more than 35% of its assets are invested in a single foreign nation. The global mutual fund returned 15.31% over the last one year period.
The global mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.34% compared to a category average of 1.52%.
To view the Zacks Rank and past performance of all global mutual funds, then click here.