Top 5 European Mutual Funds - Best of Funds

European financial markets are in the process of overcoming the economic downturn and returning to a period of stability and buoyancy. The continent's financial system has remained relatively unscathed and its banks and financial systems have responded favorably to stress tests. The region offers investors a choice of growth opportunities and secure investment destinations alike since it is home to both developed and emerging markets. Mutual funds offer investors these unique advantages along with the benefits of diversification and professional management.

Below we will share with you 5 top rated European mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all European funds, then click here.

Henderson European Focus A (HFEAX) invests the majority of its assets in equity securities of European companies. Companies invested in must be located in Europe or their principal office or major trading market must be located in the region. The European mutual fund returned 29.1% in the last one year period.

The European mutual fund has a minimum initial investment of $500 and an expense ratio of 1.61% compared to a category average of 1.70%.

Metzler/Payden European Emerging Markets (MPYMX) seeks long-term capital growth. The fund invests heavily in companies located in European emerging market countries. It focuses on acquiring equity securities that are tradable and pay dividends in foreign currencies such as the euro. The European mutual fund returned has a five year annualized return of 5.98%.

Markus Brueck is the fund manager and has managed this European mutual fund since 2002.

Fidelity Nordic (FNORX) invests primarily in securities with economic linkages to the Nordic region. Not more than 35% of its assets may be allocated to an industry which makes up more than 20% of the Nordic market. The European mutual fund returned 31.14% in the last one year period.

As of January 2011, this European mutual fund held 41 issues, with 9.51% of its total assets invested in Novo-Nordisk A S.

JPMorgan Intrepid European A (VEUAX) seeks capital appreciation over the long term. The fund focuses on acquiring equity securities of companies with significant business operations in Western Europe. Up to 20% of its assets may be invested in debt securities which are not dollar denominated. The European mutual fund has a ten year annualized return of 7.01%.

The European mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.49% compared to a category average of 1.70%.

T. Rowe Price Emerging Europe & Mediterranean (TREMX) invests at least 80% of assets in emerging-market securities. The fund invests in companies without regard to their size or market capitalization. It focuses on purchasing common stocks of companies located in or having primary operations in emerging markets. The European mutual fund returned 30.57% in the last one year period.

S. Leigh Innes is the fund manager and has managed this European mutual fund since 2007.

To view the Zacks Rank and past performance of all European mutual funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.