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 focusses on acquiring value stocks. The global mutual fund returned 23.25% over the last one year period.
The fund has an expense ratio of 1.62% as compared to category average of 1.35%.
Fidelity Mid Cap Value (FSMVX - Free Report) seeks capital appreciation over long run. It invests a lion’s share of its assets in both U.S. and non-U.S. mid-cap companies whose market capitalizations are identical to those listed in the Russell Midcap Index or the S&P MidCap 400 Index. It may also invest in small-cap and large-cap companies. The global mutual fund returned 18.24% over the last one year period.
Court Dignan is the fund manager and has managed the fund since 2013.
American Funds New Economy A (ANEFX - Free Report) invests in common stock with growth potential. It invests in those companies that may gain from innovative technologies and whose products and services have demand in the global economy. The firm invests a major portion of assets in foreign companies which may include developing economies. The global mutual fund returned 20.63% over the last one year period.
As of March 2014, this fund held 208 issues with 2.45% of its assets invested in Netflix, Inc.
Guinness Atkinson Global Innovators Fund (IWIRX - Free Report) seeks long-term capital growth. It invests in companies that may benefit from advances in fields of technology, globalism or novel management among others. The fund will invest in companies from mature equity markets, including the United Kingdom or others in the European Union. It may also invest in emerging markets in Far East. A minimum of 40% of assets are invested in global securities. The global mutual fund returned 26.90% over the last one year period.
This non-diversified fund has an expense ratio of 1.46% as compared to category average of 1.21%.
Fidelity Series International Value (FINVX - Free Report) generally invests in common stocks of foreign companies including those from emerging nations. It considers various factors such as assets, earnings and growth prospect to invest in undervalued companies all over the globe. The global mutual fund returned 10.35% over the last one year period.
Alexander Zavratsky is the fund manager and has managed the fund since 2011.
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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