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 and attractive opportunity for investors.
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.
Thornburg Global Opportunities A (THOAX - Free Report) seeks capital growth over the long run. It invests in different types of securities which may include common stocks, REITs and other equities all over the globe. It invests in securities irrespective of their market capitalizations including those with market cap below $500 million. The global mutual fund returned 31.21% over the last one year period.
The fund has an expense ratio of 1.46% as compared to category average of 1.33%.
Invesco Global Small & Mid Cap Growth A (AGAAX - Free Report) invests a lion’s share of its assets in small and mid cap companies throughout the world. It invests in a minimum of three countries with a maximum of 35% of its assets may get invested firms from emerging economies. The global mutual fund returned 20.89% over the last one year period.
Jason Holzer is the fund manager and has managed the fund since 1999.
T. Rowe Price Global Growth Stock Advisor (PAGLX - Free Report) seeks long term capital appreciation. It invests majority of its assets in both domestic and foreign large cap companies. It invests in a minimum of five countries and invests a minimum of 40% of its assets in foreign companies which may vary to 30% during unfavorable market condition. The global mutual fund returned 20.67% over the last one year period.
As of March 2014, this fund held 142 issues with 2.51% of its assets invested in Apple Inc.
Vanguard Global Equity Investor (VHGEX - Free Report) invests largely in equities of both domestic and non U.S. issuers including those from emerging markets using bottom-up stock analysis. It invests in both value and growth stocks irrespective of their market capitalization. The global mutual fund returned 19.82% over the last one year period.
The fund has an expense ratio of 0.61% as compared to category average of 1.33%.
Fidelity Mid Cap Value (FSMVX - Free Report) seeks capital appreciation over the long run. It invests a major portion of its assets in mid cap firms having market capitalizations identical to those included in the Russell Midcap Index or the S&P MidCap 400 Index. It invests in both U.S. and non U.S. companies. The global mutual fund returned 21.71% over the last one year period.
Court Dignan is the fund manager and has managed the fund since 2013.
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 in our Mutual Fund Center.