Investors’ sentiment in the United States has been boosted bythe Federal Reserve’s much anticipated 50-basis point cut in the overnight lending rate at the FOMC meeting held on Sept. 18. After keeping the interest rate unchanged over eight policy meetings, the Fed lowered the benchmark lending rate to the range of 4.75-5.00%. Fed Chairman Jerome Powell, in his speech, projected that the interest rate would fall further by 50 basis points till the end of this year, a full percentage point in 2025, and half of a percentage point in 2026 to bring back interest rates to the 2.75-3% range.

Inflation is also inching toward the Fed’s 2% inflation target. The consumer price index for the month of August rose 2.5% year over year, the lowest level since February 2021. Although the September rate cut was in line with Street expectations, concerns over an impending recession remain.

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 four mutual funds — Goldman Sachs MLP Energy Infrastructure Fund (GLPIX Quick QuoteGLPIX - Free Report) , Goldman Sachs Focused Value (GGYPX Quick QuoteGGYPX - Free Report) , Goldman Sachs Large Cap Growth Insights (GMZPX Quick QuoteGMZPX - Free Report) and Goldman Sachs Small-Cap Value Insights Fund (GTTTX Quick QuoteGTTTX - Free Report) . 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.

Why Invest in Goldman Sachs Asset Management Mutual Funds?

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 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.

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 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 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. 11, 2023. Most of the fund’s exposure was in companies like Energy Transfer (12.5%), MPLX (12.2%) Sunoco (11.4%) as of May 31, 2024.

GLPIX’s three-year and five-year annualized returns are almost 24.8% and 11.4%, respectively. GLPIX has an annual expense ratio of 1.17%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Goldman Sachs Focused Value 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 its industry peers, and sustainable growth potential.

Charles Dane has been the lead manager of GGYPX since July 17, 2018. Most of the fund’s exposure is in companies like Exxon Mobil (6.1%), Danaher (5.4%) and Colgate-Palmolive (4.7%) as of May 31, 2024.

GGYPX’s three-year and five-year annualized returns are almost 9.4% and 13.6%, respectively. GGYPX has an annual expense ratio of 0.68%.

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. 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 Apple (11%), Microsoft (11%) and NVIDIA (7.7%) as of Apr. 30, 2024.

GMZPX’s three-year and five-year annualized returns are almost 7.7% and 17.7%, respectively. GMZPX has an annual expense ratio of 0.53%.

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. GTTTX advisors also invest in foreign issues.

Joseph Kogan has been the lead manager of GTTTX since Feb. 29, 2024. Most of the fund’s exposure is in companies like Carpenter Technology (1.0%), Civitas Resources (1.0%) and Mr Cooper (1.0%) as of Apr. 30, 2024.

GTTTX’s three-year and five-year annualized returns are almost 6.7% and 12%, respectively. GTTTX has an annual expense ratio of 0.95%.

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