The presence of both domestic and foreign stocks in a portfolio provides superior returns at lower risk than holding only domestic stocks. Further, the importance of US stock markets has declined as has their relative share of global stock market capitalization. This is why investors cannot continue to restrict themselves to investing in domestic securities alone. Global mutual funds are the best possible method to invest in this particular manner. This is because they hold a wide array of domestic and foreign stocks, significantly reducing the associated risk

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

First Investors Global A (FIISX) seeks capital appreciation over the long term. The fund primarily purchases common stocks of companies worldwide. It invests in at least three countries at a given time, including the U.S. It focuses on acquiring mid-cap stocks but may also invest in small companies. This global fund returned 10.84% over the last one year period.

The global fund has a minimum initial investment of $1,000 and an expense ratio of 1.90% compared to a category average of 1.53%.

Harding Loevner Global Equity Advisor (HLMGX) invests the majority of its assets in companies located in the U.S. as well as foreign countries. The fund primarily invests in common stock, convertible securities, rights and warrants. It also invests in companies that invest in these categories of securities. The fund has a five year annualized return of 5.63%.

Ferrill T. Roll is the fund manager has managed this global fund since 2001.

Hartford Global Growth A (HALAX) seeks long-term capital growth. At least 65% of the fund’s assets are used to purchase common stocks of growth companies worldwide. Up to 25% of its assets may be invested in companies whose primary business operations are conducted in emerging markets. This global fund returned 11.18% over the last one year period.

The global fund has a minimum initial investment of $2,000 and an expense ratio of 1.13% compared to a category average of 1.53%.

Manning & Napier World Opportunities A (EXWAX) invests in companies worldwide, including companies from the U.S. The fund primarily purchases common stocks but may also invest in ADRs and dollar-denominated foreign securities. This global fund returned 10.85% over the last one year period and has a ten year annualized return of 11.85%.

As of March 2010, this global fund held 125 issues, with 2.31% of its total assets invested in Royal Dutch Shell PLC B.

Ivy Cundill Global Value A (ICDAX) seeks capital appreciation. The fund focuses on acquiring equity securities worldwide, including those issued from emerging markets. It invests in securities regardless of the country of issue, company size and industry sector. This global fund returned 19.52% over the last one year period.

The fund manager is James Thompson and he has managed this global fund since 2009.

To view the Zacks Rank and past performance of all global 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/

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