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.
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 five year annualized return of 12.31%.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.49% compared to a category average of 1.52%.
Thornburg Global Opportunities A (THOAX) invests in a wide range of equity securities worldwide. This includes common and preferred stocks, real estate investment trusts and other equity trusts. The global mutual fund returned 14.7% over the last one year period.
As of September 2010, this global mutual fund held 32 issues, with 4.95% of its total assets invested in Global Crossing, Ltd.
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 fund invests primarily in equity securities from at least three countries, including the U.S. The global mutual fund has a ten year annualized return of 6.95%.
Francis X. Claro is the fund manager has managed this global mutual fund since 1999.
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 has a three year annualized return of 5.62%.
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%.
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 18.57% over the last one year period.
Eric L. Sappenfield is the fund manager has managed this global mutual fund since 2007.
To view the Zacks Rank and past performance of all global mutual funds, then click here.