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.
First Eagle Global A (SGENX - MF report) seeks capital growth on a long term basis. The fund invests assets in equity securities of both domestic and foreign companies irrespective of their market cap. It may also invest in derivatives and commodities. The global mutual fund returned 11.90% over the last one year period.
The fund is managed by Matthew McLennan, Abhay Deshpande and Kimball Brooker.
AllianceBernstein Global Thematic Growth A (ALTFX - MF report) seeks capital growth on a long term basis. Funds are invested in securities issued by both foreign and domestic companies Investments are made across many sectors and in not less than three countries. The fund focuses on minimizing risk and maximizing growth opportunities. The global mutual fund returned 12.38% over the last one year period.
The global mutual fund has an expense ratio of 1.55% compared to a category average of 1.35%.
Tweedy, Browne Worldwide High Dividend Yield Value (TBHDX - MF report) invests in domestic and foreign equity securities which are attractively priced have appreciably high dividend yields. A minimum of 40% of its assets are utilized to purchase foreign securities issued from a minimum of three countries. The global mutual fund returned 13.89% over the last one year period.
As of May 2013, this global mutual fund held 43 issues.
Dodge & Cox Global Stock (DODWX - MF report) seeks income and principal growth on a long term basis. A minimum of 40% of assets are invested in foreign securities of at least three countries inclusive of developing and emerging nations. The global mutual fund returned 26.93% over the last one year period.
The fund manager is John Gunn and he has managed this global mutual fund since 2008.
ING International Value Equity A (NAWGX - MF report) invests a majority of assets in equity securities. A minimum of 65% of assets are invested in equity securities issued by companies situated in foreign countries. Generally, investments are parked in large cap companies. However, the fund may also invest in small and mid-cap companies. The global mutual fund returned 12.33% over the last one year period.
The global mutual fund has an expense ratio of 1.51% compared to a category average of 1.35%.
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 at http://www.zacks.com/funds.