Volatility persists in U.S. markets due to concerns over government shutdown and recession fear, resulting in a broad-based selloff. Also, the aggressive shifting of U.S. domestic and foreign policies has compelled investors to rethink their strategies.
Consumer price index increased 0.2% in February, with the annual rate cooling to 2.8% from 3% in January. Domestic macroeconomic factors like retail sales and building construction decreased last month. Consumer confidence indexes also took a significant hit in February. Trump’s aggressive tariff policies with major trading partners like Canada, Mexico and China have stoked fear that inflation will shoot up in the United States due to the reciprocal tariff structure at a time when the inflation rate is still higher than the Fed’s 2% target. Widespread layoffs of federal workers in the new Trump administration will increase the unemployment rate. Underlying weaknesses in the U.S. economy are becoming more apparent, as trade policy instability and federal spending cuts pose risks to future economic growth.
Amid such market conditions, investors who wish to diversify into various asset classes but lack professional expertise in managing funds, especially in a volatile market, can consider these three mutual funds —Goldman Sachs Large Cap Growth Insights GLCTX, Goldman Sachs U.S. Equity Dividend and Premium Fund GVIRX and Goldman Sachs Small-Cap Value Insights Fund GMAPX. These have not only preserved investors’ wealth but also generated excellent returns in the past.
These funds have the majority of their investments in sectors such as technology, finance, retail trade, energy, utilities and industrial cyclical, which help in long-term growth and preservation of wealth.
Founded in 1988, Goldman Sachs Asset Management (GSAM) is a world-renowned investment management company. GSAM provides portfolio management, design and advisory services to individual and institutional investors worldwide.
With more than 2,000 employees, GSAM has 31 offices worldwide to serve customers’ needs. The company has a team of more than 800 investment professionals who capitalize on Goldman Sachs’ technology, risk-management skills and market insights. The house aids individuals who wish to increase their wealth through various strategic investment funds.
GSAM offers investment solutions, including fixed income, money markets, public equity, commodities, hedge funds, private equity and real estate, through proprietary strategies, strategic partnerships and open architecture programs. The company’s strategies cover various asset classes, industries and geographies.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry an expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Goldman Sachs Large Cap Growth Insights fund invests most of its assets, along with borrowings, if any, in a broadly diversified portfolio of large-cap domestic and foreign equity investments that are traded in the United States. GLCTX advisors may also invest in fixed-income securities.
Sharanya Srinivasan has been one of the lead managers of GLCTX since Feb. 29, 2024. Most of the fund’s exposure was in companies like Apple (12.7%), Microsoft (12%) and NVIDIA (10.9%) as of Oct 31, 2024.
GLCTX’s three-year and five-year annualized returns are almost 13.5% and 17.7%, respectively. GLCTX has an annual expense ratio of 0.64%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Goldman Sachs U.S. Equity Dividend and Premium Fund invests most of its assets along with borrowings, if any, in dividend-paying common stocks of large-cap domestic issuers. GVIRX advisors consider large-cap stocks as those that generally have public stock market capitalizations above $3 billion.
John Sienkiewicz has been the lead manager of GVIRX since April 22, 2020. Most of the fund’s exposure was in companies like Microsoft (6.8%), Apple (6.8%) and NVIDIA (6.3%) as of Sept. 30, 2024.
GVIRX’s three-year and five-year annualized returns are almost 10.2% and 12.6%, respectively. GVIRX has an annual expense ratio of 0.75%.
Goldman Sachs Small-Cap Value Insights Fund invests most of its assets, along with borrowings, if any, in a diversified portfolio of equity securities in small-cap U.S. companies. GMAPX advisors also invest in foreign issues that are traded in the United States.
Joseph Kogan has been the lead manager of GMAPX since Feb. 29, 2024. Most of the fund’s exposure was in companies like Sprouts Farmers Market (0.9%), Fabrinet (0.9%) and Ensign (0.9%) as of Oct 31, 2024.
GMAPX’s three-year and five-year annualized returns are almost 9.1% and 10.7%, respectively. GMAPX has an annual expense ratio of 0.83%.
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