Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of the global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios, selected after careful research, global mutual funds offer a secure and attractive opportunity for investors.
Below we will share with you 5 top-rated global mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Oppenheimer Global Y (MUTF:OGLYX) invests in US and non-US companies. There are no limitations on the investing in foreign securities, be it from developing or emerging economies. Nonetheless, OGLYX is now focusing on developed markets including the US, Western Europe and Japan. Though OGLYX mostly invests in mid-to-large-cap firms, but it is not limited to particular capitalization range. The global mutual fund returned 14.3% over the last one-year period.
As of June 2015, OGLYX held 89 issues with 2.53% of its assets invested in McGraw Hill Financial Inc.
Fidelity Worldwide (MUTF:FWWFX) seeks capital appreciation. The fund purchases securities issued from any nation across the world. It focuses on acquiring common stocks and diversifies investments across various countries and regions. FWWFX returned 10.5% over the last one-year period.
The fund has an expense ratio of 0.97% as compared to category average of 1.30%.
Janus Global Select T (MUTF:JORNX) seeks long-term growth of capital. JORNX's objective is to invest primarily in common stocks selected for their growth potential. JORNX may invest in companies across the globe of any size, from larger, well-established companies to smaller, emerging growth companies. The Fund normally concentrates its investments in a core group of 40-70 US and non-US common stocks. The global mutual fund returned 19.5% over the last one-year period.
George P. Maris is the fund manager and has managed JORNX since 2012.
Thornburg Global Opportunities R5 (MUTF:THOFX) invests in varied equities and debt securities across the globe, including firms with market capitalization lower than $500 million. THOFX may invest in common stocks, preferred stocks, real estate investment trusts, and other equity trusts, which fund adviser believes help in achieving investment goals. THOFX returned 20.4% over the last one-year period.
The fund has an expense ratio of 0.99% as compared to category average of 1.30%.
Fidelity Value Strategies (MUTF:FSLSX) seeks capital growth. FSLSX focuses on acquiring common stocks. FSLSX invests primarily in common stocks of companies considered to be undervalued in relation to factors such as assets, sales, earnings or growth potential. FSLSX returned 7.7% over the last one-year period.
As of June 2015, this fund held 83 issues with 5.59% of its assets invested in LyondellBasell Industries N.V.