Top 5 International Mutual Funds - Best of Funds

Domestic investors can no longer ignore the tremendous opportunities represented by foreign equity markets. Apart from mature and developed economies, such as those located in Europe, developing markets have emerged as increasingly lucrative investment destinations. This is because they continue to grow at a rapid pace unaffected by the economic slowdown in other parts of the world. Mutual funds help in managing the unique risks associated with the sector and provide a safer route for investors to venture into international markets.

Below we will share with you 5 top rated international 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 international funds, then click here.

T. Rowe Price International Discovery (PRIDX) seeks capital appreciation over the long term. The majority of the fund's assets are invested in stocks of foreign small and mid-cap companies. It invests in a minimum of ten countries and a hundred different companies at any given time. The international mutual fund returned 34.57% in the last one year period.

Justin Thomson is the fund manager and has managed this international mutual fund since 1999.

Wasatch International Growth (WAIGX) invests a large share of its assets in securities issued by companies located in emerging markets. It invests in a minimum of five countries included in the MSCI AC World Ex-U.S.A. Small Cap index. The international fund has a three year annualized return of 8.48%.

As of March 2011, this international mutual fund held 90 issues, with 2.97% of its total assets invested in Rotork PLC.

MainStay International Equity A (MSEAX) seeks long-term capital appreciation. The fund invests a large proportion of its assets in equity securities of companies with international operations. The fund invests in a minimum of five countries, including emerging markets and mature economies. The international mutual fund has a ten year annualized return of 6.6%

The international mutual fund has an expense ratio of 1.44% compared to a category average of 1.35%.

Waddell & Reed International Growth A (UNCGX) primarily invests in foreign firms that have growing market share, an advantageous competitive position and the ability to deliver long term growth. The fund focuses on investing in mature markets, but may also invest in emerging economies. The international mutual fund has a five year annualized return of 5.17%

F. Chace Brundige is the fund manager and has managed this international mutual fund since 2009.

Sentinel International Equity A (SWRLX) seeks capital growth. The fund utilizes at least 75% of its assets to purchase foreign equity securities. Though the fund focuses on investing in developed nations, up to 20% of its assets may be invested in emerging markets. The international mutual fund returned 27.92% in the last one year period.

The international mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.45% compared to a category average of 1.35%.

To view the Zacks Rank and past performance of all international 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.