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3 Global Equity Funds to Consider During Market Uncertainty

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Global equity funds have continuously shown durability and excellent performance during economic recessions. It provides diversification across different markets and industries, reducing the risk associated with a single economy or sector.This diversification helps mitigate the impact of a recession in a specific region or industry, as the funds can allocate investments across geographically diverse companies.

One sector that has consistently demonstrated robust performance is the consumer staples sector. Consumer staples encompass essential goods and services, such as food, beverages, household products, and personal care items. Regardless of economic conditions, people tend to prioritize these necessities, making the consumer staples sector relatively resilient. In a global context, consumer staples companies benefit from a growing population, increasing disposable incomes, and evolving consumer preferences in emerging markets.

Moreover, global equity funds focusing on sectors like technology can benefit from the increasing reliance on digital solutions and innovation during recessions. In challenging economic times, technology companies hold a competitive edge with their adaptability and affordable solutions.

As businesses seek efficiency gains and cost savings, they turn to technology-driven solutions, spurring demand for technology products and services. The global nature of equity funds allows them to invest in technology companies worldwide, diversifying their exposure and capturing growth opportunities in different regions.

The influence of the global economy's interconnectedness plays an integral part in not only the triumph of technology but also consumer staples. Through globalization, the doors open for consumer staple businesses to extend into untapped markets and reach more customers than ever before. As developing countries witness swift urbanization and a greater middle-class presence, demand for essential goods from those nations is expected to skyrocket. This surge in business translates into valuable income for consumer staples’ companies while giving a push toward worldwide economic expansion.

Similarly, the technology sector thrives on global connectivity. Technological advancements have facilitated cross-border collaborations, enabling companies to access talent, resources, and markets worldwide. The interconnected nature of the global economy creates a fertile ground for technology companies to expand their operations, form strategic partnerships, and leverage their expertise on a global scale. As technology becomes increasingly pervasive, the demand for tech products and services transcends geographical boundaries, resulting in the sector's growth.

Thus, from an investment standpoint, we have selected three global funds, which are expected to hedge your portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.

Victory RS Global Fund (RSGGX - Free Report) invests most of its net assets in common stocks, preferred stocks, and other convertible securities of publicly traded companies worldwide. RSGGX advisors also invest in securities of non-U.S. companies.

Adam Mezan has been the lead manager of RSGGX since Apr 30, 2018. Most of the fund’s holdings were in companies like APPLE INC (4.4%), MICROSOFT CORP (4%), and PEPSICO INC (2.3%) as of Dec 31, 2022.

RSGGX’s 3-year and 5-year returns are 12.9% and 9.4%, respectively. The annual expense ratio is 0.85% compared to the category average of 0.95%. RSGGX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Fidelity Trend Fund (FTRNX - Free Report) seeks to achieve growth of capital by investing in common stocks of domestic and foreign issuers. FTRNX advisors seek to take advantage of trends in security values reflecting changes in general and particular economic and financial conditions.

Shilpa Mehra has been the lead manager of FTRNX since Aug 13, 2018. Most of the fund’s holdings were in companies like APPLE INC (6%), MICROSOFT CORP (8.5%), and AMAZON.COM (5.9%) as of Dec 31, 2022.

FTRNX’s 3-year and 5-year returns are 11.7% and 12.5%, respectively. The annual expense ratio is 0.57% compared to the category average of 0.99%. FTRNX has a Zacks Mutual Fund Rank #1.

Aristotle/Saul Global Equity Fund (ARSOX - Free Report) invests its assets in equity securities that are listed on an exchange and ETFs. ARSOX advisors choose to invest in Global Equity Fund, which includes emerging market countries, securities of issuers located outside the United States and foreign securities.

Howard Gleicher has been the lead manager of ARSOX since Mar 29, 2012. Most of the fund’s holdings were in companies like MICROSOFT CORP (3.7%), LENNAR CORP (3.3%) and MICROCHIP TECHNOLOGY (3%) as of Dec 31, 2022.

ARSOX’s 3-year and 5-year returns are 14.2% and 7.6%, respectively. The annual expense ratio is 0.80% compared to the category average of 0.95%. ARSOX has a Zacks Mutual Fund Rank #1.

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