Top 5 European Mutual Funds - Best of Funds

European equity markets have finally moved up, after key euro-zone members seemed closer to reaching an agreement on Greece's bailout package. The U.S., Canada and Japan have urged European G-7 members to reach an agreement on the regions' sovereign debt crisis, fearing its global impact. This is because the region represents the largest economy in the world and is expected to grow at a rapid pace as more countries join the regional bloc. Its developed nations continue to offer safe destinations for investors' capital. European mutual funds are a prudent choice 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.

T. Rowe Price European Stock (PRESX) invests the majority of its assets in companies located in European countries. It usually invests in at least five countries at any given time. Common stocks constitute its major investments. The European mutual fund has a five year annualized return of 5.28%.

Dean Tenerelli is the fund manager and has managed this European mutual fund since 2005.

U.S. Global Investors Eastern European (EUROX) seeks capital appreciation over the long term. A large proportion of its assets are used to purchase equity and equity related securities of companies from Eastern Europe. The European mutual fund has a ten year annualized return of 19.68%.

As of December 2010, this European mutual fund held 52 issues, with 10.17% of its total assets invested in Sberbank of Russia OJSC.

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 47.27% in the last one year period.

The European mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.10% compared to a category average of 1.70%.

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 or major trading market must be located in the region. The European mutual fund has a three year annualized return of 5.62%.

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

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 market stocks. The European mutual fund returned 44.92% in the last one year period.

The European mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.41% 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/mutualfunds/