Oppenheimer Funds is not a household name in the world of investing but it is one of the world's leading mutual fund companies. With billions of assets under management and a broad variety of mutual funds to choose from, Oppenheimer funds offer something for almost every kind of investor.
While mostly catering to brokers that sell front-loaded A-share mutual funds, Oppenheimer funds find most of their notoriety in the minds of investors through 401(k) plans, where they offer other share classes that provide discounts with load-waived fund versions of some of their best funds.
Three of the Best Funds from Oppenheimer
To give you a cross-section of mutual funds that are among the best Oppenheimer has to offer, here are three mutual funds in different categories:
- Oppenheimer International Small Company A (OSMAX): Like the fund name suggests, OSMAX invests primarily in small companies outside of the U.S. OppenheimerFunds has long been a leader in global investing and their experience has been a benefit to investors in the past. Performance for this aggressive stock fund has typically beaten more than 90% of small-cap foreign stock funds. It is important to note that this above-average performance comes with above-average market risk. The expense ratio of 1.42% is average for the category and the minimum initial investment is cheaper than most at $1,000.
- Oppenheimer Real Estate A (OREAX): If you are looking for a real estate sector fund that has historically edged out the real estate category averages, OREAX is worth a look. The expense ratio of 1.33% is cheaper than average for real estate funds and the minimum initial investment is $1,000. Investors should keep in mind that sector funds have concentrated holdings in one industrial sector, which creates more market risk. Sector funds can be used as diversification tools, while potentially enhancing long-term performance. Generally, it is wise to allocate less than 10% of a portfolio to just one sector.
- Oppenheimer Limited-Term Bond A (OUSGX): Bond funds are not Oppenheimer's strength but OUSGX is a standout in the short-term bond funds category. Short-term bond funds can be a good idea when interest rates are rising and OUSGX has historically outperformed its category peers. The expense ratio is 0.82%, which is a bit on the high side for bond funds but the management team has made that fee level worthwhile, especially in the long run.
OSMAX and OREAX both charge 5.75% front loads and OUSGX charges a 2.25% front load. Investors should look at other share class options, especially the load-waived shares, if available. Keeping expenses low is one of the controllable variables for successful investing. If Oppenheimer funds are in your 401(k) plan, and you have no other choices, be sure do your research and look at historical performance in addition to expenses.
The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.