The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of risk.
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.
American Century Global Growth (TWGGX) invests the majority of its assets in companies from across the globe, including domestic firms. The fund holds a wide range of securities issued by companies which are continuously growing their earnings and revenues at a rapid pace. The global mutual fund returned 3.74% over the last one year period..
Keith Creveling is the fund manager and he has managed this global mutual fund since 2005.
Marsico Global (MGLBX) seeks capital appreciation by investing in domestic and foreign companies which have the potential for long term growth. At least 40% 0f its assets are invested in securities of foreign companies or in those firms with significant international operations. The global mutual fund returned 2.35% over the last one year period.
The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.48% compared to a category average of 1.44%.
MFS Global Growth A (MWOFX) invests in both domestic and foreign securities, as well as emerging market securities. The fund may invest a substantial part of its assets in a relatively small number of countries. The global mutual fund returned 5.4% over the last one year period.
As of February 2012, this global mutual fund held 102 issues, with 2.42% of its total assets invested in Danone.
Nuveen Tradewinds Global All-Cap A (NWGAX) seeks capital appreciation. The fund invests 40% to 75% of its assets in foreign equity securities. Not more than 35% of its assets are invested in a single foreign nation. The global mutual fund returned -9.89% over the last one year period.
Andrew J Thelen is the fund manager and he has managed this global mutual fund since 2012.
Aberdeen Global Small Cap A (WVCCX) utilizes a large share of its assets to purchase equity securities of small companies worldwide. A minimum of 30% of its assets are invested in foreign companies. The global mutual fund returned 4.94% over the last one year period.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.56% compared to a category average of 1.44%.
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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