US financial markets have witnessed high volatility in recent months, primarily due to a below par domestic earnings season and the Euro zone crisis. This has led fund managers to seek better investment opportunities in the global equity space. Global mutual funds not only provide international diversification but also provide an opportunity to earn higher risk adjusted returns over the long term by investing in attractively valued markets globally. Global mutual funds therefore are a cost effective solution for investors wishing to hold an optimum combination of international and domestic investments in their portfolio.
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. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.
Invesco Global Growth A (AGGAX) invests a large share of its assets in domestic and foreign equity securities. The fund focuses on investing in large and mid-cap companies from at least three countries, including the U.S. The global mutual fund has a three year annualized return of 14.35%.
The fund manager is Barrett K. Sides and he has managed this global mutual fund since August 1999.
Putnam Global Equity A (PEQUX) seeks capital growth over the long term. A majority of its net assets are primarily invested in equities of large and mid-sized companies in developed countries. However, the fund may also invest in emerging economies. The global mutual fund has a three year annualized return of 17.05%.
As of December 2011, this global mutual fund held 230 issues, with 2.61% of its total assets invested in BG Group PLC.
Vanguard Global Equity Fund (VHGEX) invests a large share of its assets in equities of companies in the US and abroad. The fund invests in both value and growth stocks from both mature and emerging markets. The global mutual fund has a three year annualized return of 18.85%.
The global mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.54% compared to a category average of 1.45%.
MassMutual Premier Global A (MGFAX) seeks to generate long term capital appreciation. The fund invests without any restriction across several countries including emerging economies. However, it primarily focuses on investments in developed markets such as the US, Western European countries and Japan. The global mutual fund has a three year annualized return of 18.65%.
The fund manager is Rajeev Bhaman and he has managed this global mutual fund since 2004.
Hart Ford Global Growth A (HALAX) invests a minimum of 65% of its assets in equity shares of growth companies located worldwide, including companies from the U.S. Not more than 25% of its assets may be utilized to purchase emerging market securities. The global mutual fund has a three year annualized return of 15.14%.
The global mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.48% compared to a category average of 1.45%.
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 http://www.zacks.com/funds.
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