A portfolio consisting of both domestic and foreign stocks provides superior returns at comparatively lower risk compared to ones which only holds domestic equities. Additionally, the primacy of US stock markets has declined steadily over time. 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 because they hold a wide variety of domestic and foreign securities, significantly lowering 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.
Russell Global Equity A (RGEAX) seeks capital growth over the long term. The fund invests heavily in equity securities issued by domestic and foreign companies. It aims to widely diversify its investments to reflect asset allocation in a number of countries. This global mutual fund returned 21.65% over the last one year period.
The global mutual fund has an expense ratio of 1.49% compared to a category average of 1.52%.
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 has a three year annualized return of 6.8%.
As of December 2010, this global mutual fund held 115 issues, with 7.87% of its total assets invested in Nektar Therapeutics Inc
Wells Fargo Advantage Global Opportunities A (EKGAX) seeks capital appreciation. The fund invests the majority of its assets in small and mid-cap companies which are within the market cap range of the S&P Global Small/Mid Cap index. The global mutual fund has a five year annualized return of 5.96%.
Francis X. Claro is the fund manager has managed this global mutual fund since 1999.
JHancock3 Global Shareholder Yield A (JGYAX) invests heavily in a wide range of income generating equity securities worldwide. Up to 20% of its assets are invested in emerging market securities. Not more than 15% of its assets may be invested in illiquid investments. This global mutual fund returned 18.16 % over the last one year period.
The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.55% compared to a category average of 1.52%.
American Funds Capital World Growth & Income A (CWGIX) seeks capital appreciation over the long term as well as current income, The fund primarily invests in common stock of companies worldwide. These securities denominated in U.S. dollars or other currencies. Cash and money market instruments are also part of the fund’s portfolio. This global mutual fund has a ten year annualized return of 7.5%.
Stephen S. Bepler is the fund manager has managed this global mutual fund since 1993.
To view the Zacks Rank and past performance of all global mutual funds, then click here.