The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of 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. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.
Evermore Global Value A (EVGBX - Free Report) invests in both domestic and foreign companies. A minimum of 40% of assets are invested in securities of foreign companies which may be located in both mature and developing markets. The fund focuses on acquiring value stocks. The global mutual fund returned 28.38% over the last one year period.
David Marcus is the fund manager and has managed this global mutual fund since 2009.
American Funds New Economy A (ANEFX - Free Report) invests in common stock issued by domestic companies with the ability to grow in the future. The firm might also invest a major proportion of investment in securities issued by foreign companies. These also include developing nations. The global mutual fund returned 33.46% over the last one year period.
This mutual fund has an expense ratio of 0.87% as compared to category average of 1.23%.
Marsico Global (MGLBX - Free Report) invests in common stocks issued by both domestic and foreign companies with good long-term prospects. The fund invests a minimum of 40% of its assets in foreign companies or those that primarily operate outside the U.S. The global mutual fund returned 29.39% over the last one year period.
As of November 2013, this mutual fund held 49 issues with 4.91% of its total assets invested in Biogen Idec Inc.
MFS Equity Opportunities A (SRFAX - Free Report) seeks capital growth. A lion’s share of the fund’s assets is invested in companies with higher than average earnings growth potential, i.e., growth companies. It may also invest in stocks which are priced below their underlying value or both value and growth companies. The global mutual fund has returned 30.06% over the last one year period.
Matthew W. Krummell is the fund manager and has managed the fund since February 2010.
RS Investors A (RSINX - Free Report) seeks capital growth over the long term and invests in companies that are believed to be undervalued. The fund invests in companies regardless of size and the majority of its assets are invested in domestic firms. The non-diversified mutual fund has returned 34.57% over the last one year period.
The global mutual fund has an expense ratio of 1.30% as compared to category average of 1.19%.
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
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