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.
T. Rowe Price Global Stock (PRGSX - Free Report) seeks long term capital appreciation. The fund invests in prominent companies across the globe. The fund largely invests in diversified industries from developed nations and also invests a small portion in emerging economies. The fund invests in a minimum of five countries including the U.S. A minimum of 40% of its assets are invested in companies outside the U.S. The global mutual fund returned 13.3% over the last one year period.
The fund has an expense ratio of 0.91% 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. A maximum of 35% of its assets may be invested in firms from emerging economies. The global mutual fund returned 9.7% over the last one year period.
As of June 2014, this fund held 100 issues with 3.34% of its assets invested in DCC PLC.
T. Rowe Price Global Growth Stock Advisor (PAGLX - Free Report) seeks long term capital appreciation. It invests a 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 conditions. The global mutual fund returned 12.4% over the last one year period.
The fund has an expense ratio of 1.10% as compared to category average of 1.33%.
Thornburg Global Opportunities A (THOAX - Free Report) 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 18.2% over the last one year period.
As of July 2014, this fund held 46 issues with 5.01% of its assets invested in Level 3 Communications Inc
Forward Global Infrastructure A seeks capital growth and current income. The fund invests largely in companies from the infrastructure domain. It invests in a minimum of five countries. A minimum of 40% of its assets is invested in foreign companies including emerging and frontier nations. The non-diversified global mutual fund returned 8.4% over the last one year period.
Aaron Visse is the fund manager and has managed the fund since 2007.
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.