Best global equity funds to watch in 2025

It’s an exciting time to be an investor. Technological developments, entrepreneurial companies and  business-friendly governments are providing plenty of exciting opportunities. Artificial intelligence, sustainability and green energy, healthcare innovation, and infrastructure projects are among the most potentially lucrative areas. And one of the best ways to embrace this fast-developing world is with a global portfolio that can invest in the most attractive sectors and companies.

Here we look at some of the best-performing global equity funds and explain how FundCalibre can help you find some suitable portfolios.

What are global equity funds and why do they matter?

Global equity funds invest in companies worldwide. These can range from established multinational giants to start-up ventures in the emerging markets. Such geographic diversification helps reduce risk because these portfolios will have exposure to various countries, currencies, sectors and stocks. Their managers can scour the globe for the most attractive holdings, rather than having to concentrate on one particular country. For example, someone running a UK-focused portfolio is limited to buying the shares of companies listed on the London Stock Exchange and ignoring everything else.

Why consider a global equity fund?

• Investing in exciting, international companies.
• Diversified exposure to fast-growing and established sectors.
• Embracing areas outside of your home market.
• A professional fund manager makes the decisions.

How to evaluate a global equity fund

Anyone typing “best global equity funds UK” into their search engines will find a dizzying array of potential portfolios from which to choose. This is both a blessing and a curse. While it’s great to have a choice, it’s difficult to know where to start. Global equity funds will differ in terms of their focus, asset allocation, stock holdings and longer-term objectives.

So, how do you know which to choose? Well, there are at least five key criteria to consider when deciding which portfolios are worth considering.

Track record

Past performance is no guarantee of future success, but a decent longer-term track record of five to 10 years suggests the manager at the helm is capable of navigating different backdrops. However, returns must be viewed in context. The fund may have delivered 20% over the past year, but if its rivals have achieved more than 30% then its performance is less impressive. That’s why it’s important to compare a fund to an appropriate benchmark, which is typically a market index reflecting the investment style being followed.

Manager experience 

The manager’s track record is crucial. A fund may have achieved great returns but if the current manager only took over recently then the performance figures will be misleading. FundCalibre places a great deal of emphasis on analysing how a manager has performed and the research and monitoring capabilities they have at their disposal.  

Fund size

It’s also worth considering the size of the fund in terms of its assets under management as this can have a bearing on its trading abilities. Although large funds may have the financial power to negotiate better trading fees, they can also struggle to take positions in smaller-caps due to the way they’re structured.

Diversification 

It’s important to understand the manager’s approach and whether their fund is truly diversified or still heavily weighted towards certain areas. Use the fund’s latest factsheet to see how assets under management are split between regions, sectors and the size of companies.

Fees and costs

Don’t overlook the fees. High charges can have a negative effect on fund returns so ensure you know exactly how much is being levied. These costs can vary enormously, but even a relatively small percentage difference between two similar funds can have a huge effect on your returns.

You can learn more about researching an investment fund in our free Demystifying Investments Course.

Best-performing global equity funds in 2025 (so far)

It’s certainly been a challenging 12 months for global markets, with ongoing concerns over US tariff policy and the war in the Middle East taking centre stage. However, renewed investor confidence on the back of prospects that a trade deal could be struck with China, along with strong earnings, has helped markets recover. Mega-cap tech stocks such as Nvidia, Apple and Amazon have been among the best performers as they’re benefitting from the huge enthusiasm for artificial intelligence.

Global equities have had a tough start to 2025, with the IA Global sector only returning 2.75%* year to date. However, a number of Elite Rated funds have more than doubled their performance.

However, such short-term data often reflects temporary market fluctuations rather than the fund’s true long-term potential or consistency. Market conditions over such a short period can be heavily influenced by isolated events that do not provide a reliable basis for predicting future performance.

In contrast, a five-year track record offers a more comprehensive view of how the fund performs across different market cycles. This longer timeframe allows investors to assess the fund manager’s skill, risk management, and ability to deliver consistent returns, making it a far more meaningful measure for informed investment decisions.

One of the best-performing global equity funds over five years has been Ranmore Global Equity. The fund has a mixture of holdings in global companies of all sizes. Unlike other value strategies, momentum and technical factors are important parts of the investment process. In our opinion, this fund is a hidden gem for investors with a history of delivering in many different market environments. The fund has delivered 145% over the past five years, compared to just 55% for the IA Global sector**.

FundCalibre’s Elite Rated global equity funds

FundCalibre’s Elite Rating system highlights the most attractive funds in different sectors and saves you an awful lot of legwork. Our expert team analyses more than 3,000 portfolios and trusts before whittling them down to a preferred list of just 200. No more than 10% of funds in any sector are awarded a prestigious ‘Elite Rating’ because our philosophy is clear: either a fund is good enough or it’s not.

A fund manager must have at least a three-year track record to be considered, while risk-adjusted performance is measured by our AlphaQuest quantitative screening tool. This analyses the consistency of the alpha generated, as well as its absolute level, by using weekly data going back over a decade, or at least the tenure of the manager. This information is then used to generate an expected alpha range and gauge the probability of it being able to produce positive future alpha.

For example, CT Global Focus is a concentrated, high-conviction portfolio of best ideas. It focuses on high-quality, high return on capital businesses that can compound over the long term. Its manager, David Dudding, has successfully executed a clear investment philosophy and process throughout his career. He has been at the helm of this portfolio since 2018.

Matching global equity funds to your investment goals

So, how will a global equity fund fit into your overall portfolio? Well, it largely depends on your investment objectives and what you already have in place. For example, are you seeking growth or income? Do you have an investment horizon of many decades, or are you fast approaching retirement?

The answers to these questions will influence your investment options.

Growth seekers

Many global equity funds are more focused on capital growth, which means investing in companies that are busy expanding. Such stocks include technology giants involved in software and AI, as well as innovative healthcare firms and those looking to rapidly expand their customer base.

There are pros and cons with such companies. On the plus side, they are usually innovative, grow rapidly and can reward investors with significant share price increases. However, they can also be more volatile, sensitive to interest rate changes, and vulnerable to investor sentiment and increasing competition.

Funds focusing on growth-oriented global stocks are likely to be more suited to longer-term investors who are willing to accept some volatility for better longer-term returns. This means they have time on their side and a greater chance of their portfolios recovering in value should they run into some temporary stock market turbulence.

Let’s use a fictional case study to illustrate the point. Michelle, a 30-year-old corporate highflier, may be drawn to a growth approach as she has around three decades before retirement.

Start researching global growth funds

Income seekers

But how about those wanting a regular income? Many investors are looking to generate an extra revenue stream or wanting exposure to less growth-hungry companies. Fortunately, there are options wanting more stable international exposure and that involves looking at some of the best global equity income funds. These portfolios will invest in companies around the world that pay dividends to shareholders out of their profits. Hopefully, these pay-outs will be consistent and rising.

Global dividends hit a record $1.75 trillion in 2024, up 6.6% on an underlying basis, according to the latest Janus Henderson Global Dividend Index. Microsoft was the biggest individual payer, while 17 out of the 49 countries covered saw record dividends. This list included the US, Canada, France, Japan and China. Despite the current international uncertainty, payouts are expected to grow 5% this year to hit $1.83 trillion, which is obviously good news for global investors***.

Businesses that pay regular dividends are regarded as being stable and reliable, benefitting from strong demand for their products/services. As well as sharing their profits, they also expect to reward investors with share price increases over time, which enables them to offer capital growth.

Returning to our fictional investors, such a fund may suit Dave, 60, who is looking to build his retirement nest egg but wants exposure to more stable companies.

Start researching Global Equity Income funds

How global equity funds perform in volatile markets

It’s fair to say the performance of global funds during volatile conditions will depend on factors such as their geographic diversification and asset allocation. For example, global funds that have a significant bias towards a handful of countries are going to be potentially more vulnerable to shocks in that region. Similarly, a portfolio that’s packed full of technology names may be adversely affected if a couple of companies within that sector issue a profit warning.

A look at the performance data illustrates the point. Back in the Covid-ravaged days of 2020, some global funds lost money, while a handful of funds delivered returns of over 50% – including the Elite Radar IFSL Marlborough Global Innovation fund, which delivered 65% for clients in 2020, compared with just 15% for the sector****.

However, most funds were adversely affected by the inflation spike of 2022 as it caused supply chain disruptions, rising energy prices, and widespread uncertainty in financial markets. Global funds can respond to unpredictable market backdrops in a variety of ways. Some may change the asset allocation to have more – or less – exposure to certain areas. Others use currency hedging as a strategy to protect their investments from unwelcome changes in exchange rates by using financial tools such as forward contracts and currency swaps.

FAQs about global equity funds:

• What are global equity funds?

  • Global equity funds invest in companies around the world. This means their managers have more scope to find exciting opportunities. This contrasts with more locally-focused portfolios that are only allowed to invest in assets listed in a specific country.

• Are global equity funds good for beginners?

  • Yes. A global equity fund offers broad exposure to a diverse range of geographic areas, sectors, and individual companies. However, would-be investors need to do their research to establish exactly what assets it holds.

• How can I assess a global fund’s performance?

  • You can consider factors such as returns over the past five years, how long the manager has been at the helm, and whether the fund has been volatile. It’s also important to assess the returns achieved compared with the performances of similar portfolios.

• Do global equity funds pay dividends?

  • Yes, some pay dividends. Many of these funds invest in companies that pay dividends to their shareholders out of profits generated. Funds will collect these dividends. Depending on their structure, these are either automatically invested into the fund or paid out to you.

• Can I hold global funds in an ISA or SIPP?

  • Yes. You can hold global funds within individual savings accounts (ISAs) and self-invested personal pensions (SIPPs) – and enjoy tax advantages. For example, you enjoy income tax relief – the amount depends on what rate taxpayer you are – and tax-free growth with a SIPP. However, your funds are locked away until you’re in your mid-50s. ISAs enable you to grow your pot tax-free, allow access to your money, but limit you to investing a maximum of £20,000 per tax year^.

Final thoughts and where to begin

Global equity funds are worth considering by anyone wanting diversified international exposure to some of the best companies on the planet. This approach should reduce your risk as the manager of the fund will be scouring the world for the most attractive opportunities, as opposed to limiting themselves to one region. However, this is a competitive area, with plenty of fund choices. Some will be growth-oriented portfolios and focus on buying into companies that have dreams of being tomorrow’s superstars.

Others will prefer stable, reliable businesses that have a long history of paying shareholders dividends out of profits generated. Then you have those trying to strike a balance. That’s why it’s so important to decide your investment goals and carry out your research, as global funds can differ enormously in terms of how they’re invested and managed.

Consider using FundCalibre’s Elite Ratings to narrow down the choices and find the best portfolios to meet your investment needs.

*Source: FE Analytics, total returns in pounds sterling, 1 January 2025 to 10 July 2025

**Source: FE Analytics, total returns in pounds sterling, 10 July 2020 to 10 July 2025

***Source: Janus Henderson Global Dividend Index, March 2025

****Source: FE Analytics, total returns in pounds sterling, discrete calendar 2020

^Tax rules and contribution limits are subject to change