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.
Fidelity Advisor Tax Managed Stock A (FTXAX) invests the majority of its assets in securities issued by domestic and foreign companies. The fund makes investment decisions after taking into consideration various parameters such as growth potential, associated risk, valuation and liquidity. Fundamental techniques are also utilized. This global fund returned 40.05% over the last one year period
The fund manager is Keith Quinton and he has managed this global mutual fund since 2004.
Kinetics Paradigm No Load (WWNPX) seeks capital growth on a long term basis. A minimum of 65% of its assets are invested in securities which are issued by domestic and foreign companies. A maximum of 20% of its assets are invested in junk bonds. The non-diversified global mutual fund returned 36.51% over the last one year period.
The global mutual fund has an expense ratio of 1.64% compared to a category average of 1.35%.
Dodge & Cox Global Stock (DODWX) invests a minimum of 40% of its assets in foreign securities of at least three countries, inclusive of developing and emerging nations. The global mutual fund returned 36.52% over the last one year period.
As of March 2013, this global mutual fund held 96 issues, with 4.16% of its total assets invested in Hewlett-Packard Co.
Dreyfus Worldwide Growth A (PGROX) seeks capital growth on a long term basis along with capital preservation and current income. The fund invests a minimum of 25% of its assets in domestic and foreign companies each. It focuses on companies whose market cap is more than $5 billion. The global mutual fund returned 19.63% over the last one year period.
The fund manager is Fayez Sarofim and he has managed this global mutual fund since 1993.
Polaris Global Value (PGVFX) invests in global companies irrespective of their market cap. This includes companies from emerging and developing nations. The fund focuses on investing in 15 different industries so that it has a well diversified portfolio. The global mutual fund returned 35.89% over the last one year period.
The global mutual fund has an expense ratio of 1.36% compared to a category average of 1.35%.
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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