If selected carefully, global mutual funds have the potential to offer secure and attractive investment opportunities. Different studies over the years have shown that a portfolio with both domestic and foreign securities help in reducing risk while enhancing returns. Also, a steady decline in the U.S. equity markets’ share in the global stock market capitalization has made investors consider diversifying their investments throughout the globe.
Separately, slowdown in the Chinese and Japanese economies, and deflationary fears in the Euro zone forced the central banks of these countries to opt for an intensified economic stimulus including rate cuts and a monetary easing program. Since most of the developed economies are thriving on easy money, these are acting as lucrative investment propositions.
Meanwhile, a flurry of encouraging economic data signaled that the U.S. economy is witnessing a moderate growth rate. In this scenario, one may consider global mutual funds to take advantage of these opportunities. Though cheap money inflows set the stage for the bulls globally, investors need to be selective while playing this field, given the heightened uncertainty.
Below we share with you four top-rated, global mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all global mutual funds, investors can click here to see the complete list of global funds.
USAA World Growth (USAWX - Free Report) seeks growth of capital. USAWX invests in securities of companies located throughout the globe including those from emerging markets. The fund invests in equity securities including common stocks, depositary receipts and preferred stocks. USAA World Growth has a five-year annualized return of 8%.
USAWX has an expense ratio of 1.17% as compared to the category average of 1.27%.
Fidelity Series All-Sector Equity (FSAEX - Free Report) invests a large chunk of its assets in equity securities of both U.S. and non-US companies. FSAEX primarily focuses on acquiring common stocks of both growth and undervalued companies. The fund considers factors including financial strength and economic conditions before investing in a company. Fidelity Series All-Sector Equity has a five-year annualized return of 10.3%.
As of March 2016, FSAEX held 204 issues, with 3.44% of its assets invested in S&P500 Emini Fut Jun16 Esm6.
MFS Global Equity A (MWEFX - Free Report) seeks capital growth. MWEFX primarily invests in equity securities of companies and uses the blend strategy to invest in securities of both growth and undervalued companies. MFS Global Equity A has a five-year annualized return of 8%.
David R. Mannheim is one of the fund managers of MWEFX since 1992.
Dreyfus Worldwide Growth A (PGROX - Free Report) invests the lion’s share of its assets in common stocks of companies located worldwide. PGROX invests a minimum of 25% of its assets in securities of non-U.S. companies and not less than 25% in securities of domestic companies. Also, the fund invests in securities of companies having market capitalization of more than $5 billion. Dreyfus Worldwide Growth A has a five-year annualized return of 6.6%.
PGROX has an expense ratio of 1.17% as compared to the category average of 1.27%.
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 at https://www.zacks.com/funds.