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 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 4 best 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.
Pioneer Global Equity A (GLOSX - Free Report) invests a lion’s share of its assets in equity securities of issuers around the globe. GLOSX invests a minimum of 40% of its assets in securities of foreign issuers and may invest a maximum of one-fifth of its assets in debt securities. GLOSX may also invest at most 5% of its assets in junk bonds. The Pioneer Global Equity A fund has a three-year annualized return of 16.9%.
As of February 2015, GLOSX held 104 issues with 4.47% of its assets invested in Microsoft Corp.
Oppenheimer Global A (OPPAX - Free Report) seeks capital growth over the long run. OPPAX focuses on acquiring common stocks of domestic and foreign companies. Though OPPAX generally invests in companies from developed economies, it may also consider those located in developing or emerging nations for investment. The fund invests in companies irrespective of their market capitalizations but may give more emphasize to mid and large cap companies. OPPAX is expected to invest in a minimum of three countries. The Oppenheimer Global A fund has a three-year annualized return of 16.4%.
Rajeev Bhaman is the fund manager and has managed the fund since 2004.
Polaris Global Value (PGVFX - Free Report) utilizes a value oriented approach to invest in common stocks of both U.S. and non-U.S. companies, which also include firms from emerging nations. Adviser defines emerging or developing markets as those which are not listed in the MSCI World Index. The Polaris Global Value fund has a three-year annualized return of 18.5%.
PGVFX has an expense ratio of 0.99% as compared to category average of 1.31%.
American Funds New Economy A (ANEFX - Free Report) seeks long-term capital appreciation. ANEFX generally invests in common stocks of companies that are expected to have impressive growth potential. ANEFX emphasizes on acquiring securities of companies that may benefit from innovation and new technologies which will help them to meet global demand. ANEFX may invest a notable share of its assets in non-US companies including those located in developing economies. The American Funds New Economy A fund has a three-year annualized return of 19.5%.
As of March 2015, ANEFX held 229 issues with 2.82% of its assets invested in Netflix Inc.
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. Pick the best mutual funds with the Zacks Rank.