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Wanted: The best funds. Our recommendations …

As you can see, not only is there a wide selection of funds and categories, it is also not so easy to find the best funds.

It is particularly important for you as an investor that you choose your funds according to your personal risk appetite. For opportunity-oriented investors, actively managed equity funds are suitable as a basic investment or as an addition to a well-diversified fund portfolio. Interesting as a basic investment are equity funds that spread worldwide, as well as those that invest primarily in Europe. As an investor, you spread your capital and risk on numerous shares from many countries and industries, and in the case of funds investing worldwide, even on different currency areas – including currency risk.

A convincing risk-return structure in the global equity fund category currently shows the Low volatility equity portfolio A (ISIN LU0861579265 / WKN A141C0) from AllianceBernstein. Over the past five years, the global fund has achieved an average annual return of 12.5 percent (as of 03/2019). In comparison, other funds in this investment category only grew by an average of 8.3 percent per year. The primary investment objective of this fund is long-term capital growth. The low volatility mainly invests in companies that are located in industrialized countries, currently primarily in US stocks (approx. 50%). In addition to information technology with companies such as Microsoft or NICE Systems (technology share: 23%), fund management is currently investing primarily in the health sector (e.g. Roche or Merck & Co.) and in the financial sector. Special feature: The AllianceBernstein fund primarily selects stocks that pose a lower risk than the market as a whole. Finanztest currently rates the Low Volatility Equity Portfolio A as well above average (5 points).

The European fund is convincing Candriam Equities L Europe Innovation C (ISIN LU0344046155 / WKN A0Q2N9). The actively managed fund also clearly outperforms its peer group. While the Candriam fund has achieved an average return of 10.77 percent per year over the past five years, comparable funds only grew by 5.1 percent on average over the year. Capital growth is also high on the agenda for the Candriam Fund. Fund management primarily invests in companies with a high level of innovation, whose main focus lies within the European Economic Area (EEA). The main investments are in consumer goods (22%), raw materials (19%) and industry / capital goods (17%), with a good 60% of the companies having their headquarters in Germany, Great Britain, France or Switzerland. Among the top companies are a. German consumer goods manufacturers from the range of a Beiersdorf (Nivea, Tesa) or Henkel (Persil, Pril). Stiftung Warentest also awards the Candriam Equities L Europe Innovation C 5 points in the “financial test” rating.

Our recommendation: Both funds are among the best in their category and are therefore very suitable as a basic investment for long-term asset accumulation. If you want to buy one of the funds, you should avoid the high front-end load (5 percent for low volatility, 3.5 percent for Candriam Equities). For example, open a brokerage custody account, where you will receive both funds without a front-end load.

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