Yahoo Finance 5 Goldman Sachs Mutual Funds to Buy for Long-Term Gains
This year, major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 16.1%, 21.2% and 4.3%, respectively.
Investors breathe a sigh of relief as various indicators show inflation in the U.S. slowly cooling off. Personal Consumption Expenditures, which is the Federal Reserve’s preferred inflation gauge, edged lower to 2.6% year over year in May compared to 2.7% in April. Since the beginning of 2024, PCE inflation remained unchanged on a monthly basis for the first time in May after rising 0.3% in April. The Consumer Price Index remained unchanged, and the Producer Price Index fell unexpectedly over the same period.
The report published by the Bureau of Economic Analysis also shows a favorable macroeconomic environment. Personal income grew 0.5% monthly in May compared to 0.3% in April, while personal spending rose 0.2% after rising 0.1% in April. The Job Openings and Labor Turnover Survey (JOLTS) report shows that job openings in the United States rose 221,000 to 8.14 million in May.
Since the Fed is still looking to achieve its ambitious 2% inflation target, uncertainties remain over the lack of a timeline for interest rate cut initiation even after various Fed-friendly data came in May. Investors who wish to diversify into various asset classes but lack professional expertise in managing funds, especially in a volatile market, can consider Goldman Sachs mutual funds. The fund house has a reputation as a trusted partner with long-term financial success.
Founded in 1988, Goldman Sachs Asset Management (GSAM) is a world-renowned investment management company. GSAM has provided portfolio management, design and advisory services to individual and institutional investors worldwide.
With over 2,000 employees, GSAM has 31 offices across the world 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 fund house provides 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.
We have thus selected five Goldman Sachs mutual funds that have not only preserved investors’ wealth but also generated excellent returns amid market uncertainties. These funds have the majority of their investments in sectors such as technology, finance, retail trade, energy, utilities and industrial cyclical, which will help in long-term growth and preservation of wealth.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date (YTD), three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio. 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 MLP Energy Infrastructure Fund GLPIX fund invests most of its assets, along with borrowings, if any, in equity or fixed-income securities issued by domestic and foreign energy infrastructure companies. GLPIX advisors may also invest a small portion of the fund’s net assets in non-energy sectors.
Christopher A Schiesser has been the lead manager of GLPIX since Jan 10, 2023. Most of the fund’s exposure was in companies like Energy Transfer (12.6%), MPLX (11.6%) and Enterprise Products Partners (10.5%) as of Feb 29, 2024.
As of May 31, 2024, GLPIX’s YTD, three-year and five-year annualized returns are almost 12.3%, 20.7% and 9.1%, respectively. GLPIX has an annual expense ratio of 1.18%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Goldman Sachs Large Cap Growth Insights GMZPX fund invests most of its assets, along with borrowings, if any, ina broadly diversified portfolio of large-cap domestic and foreign equity investments that are traded in the United States. GMZPX advisors may also invest in fixed-income securities.
Sharanya Srinivasan has been one of the lead managers of GMZPX since Feb 28, 2024. Most of the fund’s exposure was in companies like Microsoft (12.8%), Apple (12.2%) and Amazon.com (5.7%) as of Jan 31, 2024.
As of May 31, 2024, GMZPX’s YTD, three-year and five-year annualized returns are almost 15.5%, 9.9% and 17.5%, respectively. GMZPX has an annual expense ratio of 0.58%.
Goldman Sachs Focused Value GGYPX fund invests most of its assets along with borrowings, if any, in a diversified portfolio of common stocks, preferred stocks and other instruments with equity characteristics. GGYPX advisors choose to invest in quality companies that are undervalued with competitive advantages over the industry peers and have sustainable growth potential.
Kevin Martens has been the lead manager of GGYPX since Dec 26, 2019. Most of the fund’s exposure was in companies like Exxon Mobil (5.4%), Danaher (5.0%) and Salesforce (4.7%) as of Feb 29, 2024.
As of May 31, 2024, GGYPX’s YTD, three-year and five-year annualized returns are almost 8.3%, 8.3% and 13.4%, respectively. GGYPX has an annual expense ratio of 0.68%.
Goldman Sachs U.S. Equity Dividend and Premium Fund GVIRX 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 Apr 22, 2020. Most of the fund’s exposure was in companies like Microsoft (7.3%), Apple (7.1%) and Amazon.com (3.4%) as of Dec 31, 2023.
As of May 31, 2024, GVIRX’s YTD, three-year and five-year annualized returns are almost 9.0%, 7.7% and 12.6%, respectively. GVIRX has an annual expense ratio of 0.77%.
Goldman Sachs Large Cap Value Fund GMYPX invests most of its assets along with borrowings, if any, in a diversified portfolio of large-cap companies. GMYPX advisors may also invest in securities of foreign issuers, which include developed and emerging markets economies quoted in foreign currencies.
Kevin Martens has been the lead manager of GMYPX since Dec 26, 2019. Most of the fund’s exposure was in companies like Exxon Mobil (3.6%), JPMorgan Chase (3.3%) and Johnson& Johnson (2.5%) as of Feb 29, 2024.
As of Apr 30, 2024, GMYPX’s YTD, three-year and five-year annualized returns are almost 9.1%, 7.6% and 11.6%, respectively. GMYPX has an annual expense ratio of 0.71%.
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