A global equity fund allows you to access markets around the world by investing in global stock markets. These funds invest a part of the investments in North America, Europe, and Asia.
The number of publicly traded companies worldwide exceeds 13500 and another 700 more companies are likely to go public in less than a year. Also each important developed country provides investors different bonds for investment. This offers investors plenty of investment avenues and lot of choices. Investors can benefit from this opportunity by investing in a good global balanced fund that aims to invest in bonds and stocks or a global equity fund that invests in stocks throughout the world.
A global equity fund invests in global stock markets. These funds invest a part of their investments in North America, Europe, and Asia. Some of them own innumerable securities to enjoy the growth prospects of various companies while spreading around the risk that comes with investing in different companies. A good global equity fund forms the base of a well-diversified mutual fund portfolio for any profile of investor. The investors can select any one of these global equity funds for their portfolio: the AGF International Value Fund, the BPI Global Equity Fund, or the Fidelity International Portfolio Fund
A global balanced fund invests in both global stock and bond markets. These funds will always invest a part of their investments in stock and bond markets of North America, Europe, and Asia. They are more risk averse than global equity funds, since they invest in a mixture of stocks and bonds , and this can affect the fund’s performance. In long run, the returns from these funds are less than the global equity funds, but are also less risky. The risk factor of these funds is lesser due to bonds, which are less volatile than stocks. They do not fluctuate to the same degree as the stocks. A risk-averse investor can opt for a good global balanced fund that should form the basis of a diversified portfolio.