Over the years, research has consistently shown that investing in a portfolio with both domestic and foreign securities provides superior returns at lower risk levels, than holding just one particular type. Moreover, with its share of global stock market capitalization declining steadily, the importance of the US stock markets has diminished to a significant extent. Therefore, investors cannot afford to limit themselves to domestic investments. By holding widely diversified portfolios, global mutual funds offer a secure and attractive opportunity for investors looking at this category.
Below we will share with you 5 top rated global funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all global funds, then click here.
Hartford Global Growth A (HALAX) utilizes at least 65% of its assets to purchase common stocks of growth companies worldwide. Up to 25% of its assets may be invested in companies whose primary business operations are conducted in emerging markets. This global fund returned 8.1% over the last one year period.
The global fund has a minimum initial investment of $2,000 and an expense ratio of 1.13% compared to a category average of 1.53%.
First Investors Global A (FIISX) seeks capital appreciation over the long term. The fund primarily purchases common stocks of companies worldwide. It invests in at least three countries at a given time, including the U.S. It focuses on acquiring mid-cap stocks but may also invest in small companies. The global fund has a five year annualized return of 3.43%.
Matthew C. Megargel is the fund manager and he has managed this global fund since 2000.
Van Kampen Global Equity Allocation A (MSGAX) invests a large proportion of its assets to purchase equities from three different countries, including the U.S. Up to 10% of its assets are invested in real estate firms located outside the U.S. and in real estate investment trusts. This global fund returned 9.17% over the last one year period.
The global fund has a minimum initial investment of $1,000 and an expense ratio of 1.70% compared to a category average of 1.53%.
Manning & Napier World Opportunities A (EXWAX) seeks long term growth. It invests in companies worldwide, including companies from the U.S. The fund primarily purchases common stocks but may also invest in ADRs and dollar-denominated foreign securities. This global fund returned 11.1% over the last one year period and has a ten year annualized return of 11.21%.
As of June 2010, this global fund held 73 issues, with 4.19% of its total assets invested in Amdocs Ltd.
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, or even a single country. This global fund returned 12.42% over the last one year period.
Jeffrey C. Constantino is the fund manager and he has managed this global fund since 2008.
To view the Zacks Rank and past performance of all global funds, then click here.
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/mutualfund/
