Top 5 European Mutual Funds - Best of Funds

A region made up by both mature markets and emerging economies, Europe is one of the richest continents on the planet. The European Union represents the largest economic zone in the world and is expected to grow at a rapid pace as more nations agree to join the regional bloc. Its developed nations offer safe destinations for investors' capital while emerging markets offer exciting growth prospects for those with a higher appetite for risk. Mutual funds focusing on Europe are back in favor again as the region offers healthy prospects for investors.

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) seeks long-term capital growth. The fund invests the majority of its assets in equity securities of European companies. Companies invested in must be located in Europe or their principal office must be located in the region. The European mutual fund has a three year annualized return of 8.33%.

Stephen Peak is the fund manager and has managed this European mutual fund since 2001.

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 emerging markets. The European mutual fund has a ten year annualized return of 17.95%.

The European mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.41% compared to a category average of 1.69%.

Eastern European Equity A (VEEEX) seeks capital growth. The fund invests the majority of its assets in Eastern European companies or firms that have a significant portion of their operations in the region. It invests in at least three different countries from the region. The European mutual fund returned 12.47% in the last one year period.

As of March 2011, this European mutual fund held 48 issues, with 7.76% of its total assets invested in OAO Gazprom ADR.

Columbia European Equity A (AXEAX) invests a large proportion of its assets in equity securities of growth oriented European companies. It focuses on acquiring securities issued from mature markets, but may also invest in emerging markets. The European mutual fund returned has a five year annualized return of 6.37%.

Dan Ison is the fund manager and has managed this European mutual fund since 2009.

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 tradable equity securities that pay dividends in foreign currencies such as the euro. The European mutual fund returned 19.84% in the last one year period.

The European mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.50% compared to a category average of 1.70%.

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/mutualfund/