Trading remained choppy due to investors' cautious approach ahead of the United States election, which is due on Nov. 5, 2024. Though the domestic macroeconomic scenario is favorable for investors, the benchmark 10-year treasury yield reached 4.222% last week, the highest level in three months, as results of the election could determine whether there will be a surge in federal borrowing.

Many investors are expecting a 25-basis-point interest rate reduction during the Fed’s November meeting based on CME Group’s FedWatch Tool predictions showing a 95.1% probability. Market participants are also weighing the possibility of a much slower pace of future interest rate cuts by the Federal Reserve due to strong incoming macroeconomic data in recent weeks. Rising geo-political turmoil in the Middle East between Iran and Israel also remains a key concern for investors.

Amid such market conditions, investors who wish to diversify into various asset classes but lack professional expertise in managing funds, especially in a volatile market, can consider these three mutual funds — Goldman Sachs Trust - Goldman Sachs Focused Value Fund (GFVAX Quick QuoteGFVAX - Free Report) , Goldman Sachs Large Cap Growth Insights (GLCTX Quick QuoteGLCTX - Free Report) and Goldman Sachs Small-Cap Value Insights Fund (GSXPX Quick QuoteGSXPX - Free Report) .These have not only preserved investors’ wealth but also generated excellent returns in the past.

These funds have the majority of their investments in sectors such as technology, finance, retail trade, energy, utilities and industrial cyclical, which help in long-term growth and preservation of wealth.

Why Invest in Goldman Sachs Asset Management Mutual Funds?

Founded in 1988, Goldman Sachs Asset Management (GSAM) is a world-renowned investment management company. GSAM provides portfolio management, design and advisory services to individual and institutional investors worldwide.

With over 2,000 employees, GSAM has 31 offices across the world to serve customers’ needs. The company has a team of more than 800 investment professionals who capitalize on Goldman Sachs’ technology, risk-management skills and market insights. The fund house provides individuals who wish to increase their wealth through various strategic investment funds.

GSAM offers investment solutions, including fixed income, money markets, public equity, commodities, hedge funds, private equity and real estate, through proprietary strategies, strategic partnerships and open architecture programs. The company’s strategies cover various asset classes, industries and geographies.

These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry an expense ratio of 1% or less. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Goldman Sachs Trust - Goldman Sachs Focused Value Fund invests most of its assets along with borrowings, if any, in a diversified portfolio of common stocks, preferred stocks, and other instruments with equity characteristics. GFVAX advisors choose to invest in quality companies that are undervalued with competitive advantages over its industry peers, and sustainable growth potential.

Kevin Martens has been the lead manager of GFVAX since Dec. 27, 2019. Most of the fund’s exposure is in companies like Exxon Mobil (6.1%), Danaher (5.4%) and Colgate-Palmolive (4.7%) as of May 31, 2024.

GFVAX’s three-year and five-year annualized returns are almost 11.5% and 13.2%, respectively. GFVAX has an annual expense ratio of 1%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Goldman Sachs Large Cap Growth Insights fund invests most of its assets, along with borrowings, if any, ina broadly diversified portfolio of large-cap domestic and foreign equity investments that are traded in the United States. GLCTX advisors may also invest in fixed-income securities.

Sharanya Srinivasan has been one of the lead managers of GLCTX since Feb. 29, 2024. Most of the fund’s exposure was in companies like Apple (13.1%), Microsoft (12.7%) and NVIDIA (10%) as of July 31, 2024.

GLCTX’s three-year and five-year annualized returns are almost 10.3% and 18.2%, respectively. GLCTX has an annual expense ratio of 0.65%.

Goldman Sachs Small-Cap Value Insights Fund invests most of its assets along with borrowings, if any, in a diversified portfolio of equity securities in small-cap U.S. companies. GSXPX advisors also invest in foreign issues that are traded in the United States.

Joseph Kogan has been the lead manager of GSXPX since Feb. 29, 2024. Most of the fund’s exposure is in companies like M/I Homes (1.0%), Lumen Technologies (0.9%) and CNO Financial (0.9%) as of July 31, 2024.

GSXPX’s three-year and five-year annualized returns are almost 6.8% and 10.9%, respectively. GSXPX has an annual expense ratio of 0.83%.

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