Top 5 Global Mutual Funds - Best of Funds

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, then click here.

Invesco Global Equity A (GTNDX) invests the majority of its assets equity securities. The fund invests in at least three different countries including the U.S at any given point time. It focuses on investing in the U.S. and in mature markets located in Western Europe and the Pacific Basin. The global mutual fund has a ten year annualized return of 5.65%.

The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.61% compared to a category average of 1.47%.

Fidelity Worldwide (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. The global mutual fund returned 37.22% in the last one year period.

The fund manager is William Kennedy and he has managed this global mutual fund since 2006.

ING Global Value Choice A (NAWGX) invests at least 65% of its assets in different countries, including the U.S. The majority of its assets are invested in stocks, depository receipts, derivatives and convertible securities. Not more than 25% of its assets are invested in companies from emerging markets. The global mutual fund has a three year annualized return of 9.99%.

The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.48% compared to a category average of 1.47%.

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 27.51% over the last one year period.

As of May 2011, this global mutual fund held 76 issues, with 6.19% of its total assets invested in Cash Equivalent (State Street Repo).

Dreyfus Worldwide Growth A (PGROX) invests the majority of its assets in domestic and foreign common stock. It focuses on purchasing securities issued by prominent firms with market values exceeding $5 billion. The global mutual fund has a five year annualized return of 5.43%.

Fayez Sarofim is the fund manager and he has managed this global mutual fund since 1993.

To view the Zacks Rank and past performance of all global mutual 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.