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 the 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.
GAMCO Global Telecommunications A (GTCAX - Free Report) invests a major portion of its assets in companies which are part of the telecommunications industry. It invests in those companies which have the potential to quickly grow its revenues and earnings, and have the capacity for above average capital appreciation or are undervalued. It invests in securities of issuers located in a minimum of three countries. The non-diversified global mutual fund returned 4.6% over the last one year period.
As of June 2014, this fund held 154 issues with 4.23% of its assets invested in Directv.
Pioneer Global Equity A (GLOSX - Free Report) seeks long term capital appreciation. The fund invests a large portion of its assets in equity securities of issuers located across the globe. It may invest in securities of any market cap, in any industry or in any sector. It invests a minimum 40% of its assets in issuers located outside the U.S. It may invest a maximum 20% of its assets in debt securities of corporate and government issuers and a maximum of 5% of its assets in junk bonds, and cash and cash equivalents. The global mutual fund returned 14.5% over the last one year period.
The fund has an expense ratio of 1.3% 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 19.5% over the last one year period.
As of September 2014, this fund held 43 issues with 5.45% of its assets invested in Valeant Pharmaceuticals International 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 6.3% over the last one year period.
Aaron Visse is the fund manager and has managed the fund since 2007.
Putnam Global Industrial A (PGIAX - Free Report) invests in large and mid-cap companies throughout the world. It invests in companies engaged in research, development, manufacture, distribution and sale of industrial products, services and equipment. It may use derivative instruments for both hedging and non-hedging purposes. The non-diversified global mutual fund returned 5.6% over the last one-year period.
As of September 2014, this fund held 91 issues with 11.4% of its assets invested in L-3 Communications Holdings Inc
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.