A portfolio consisting of both domestic and foreign stocks provides superior returns at comparatively lower risk compared to one which only holds domestic equities. Additionally, the primacy of US stock markets has declined steadily over time. 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 because they hold a wide variety of domestic and foreign securities, significantly lowering the associated risk.

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

Invesco Global Small & Mid Cap Growth A ( AGAAX - MF report ) invests the majority of its assets in small and mid-sized companies with the potential for superior growth. Not more than 35% of its assets may be utilized to purchase emerging market securities. The global mutual fund returned 20.28% in the last one year period.

The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.45% compared to a category average of 1.46%.

Fidelity Worldwide ( FWWFX - MF report ) seeks capital appreciation. The fund purchases securities issued from any nation across the world. It focuses on acquiring common stocks and diversifies investments across various countries and regions. The global mutual fund has a ten year annualized return of 6.32%.

The fund manager is William Kennedy and he has managed this global mutual fund since 2006.

Dreyfus Worldwide Growth A ( PGROX - MF report ) invests the majority of its assets in domestic and foreign common stock. It focuses on purchasing securities issued by prominent firms with market values exceeding $5 billion. The global mutual fund returned 26.46% in the last one year period.

The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.26% compared to a category average of 1.46%.

Thornburg Global Opportunities A (THOAX) seeks capital growth over the long term. The fund invests in a wide range of equity securities worldwide. This includes common and preferred stocks, real estate investment trusts and other equity trusts. The fund may also invest in smaller firms with market capitalizations below $500 million. The global mutual fund has a five year annualized return of 9.06%.

As of June 2011, this global mutual fund held 32 issues, with 4.93% of its total assets invested in Devon Energy Corp.

Virtus Global Opportunities ( NWWOX - MF report ) invests heavily in equity-linked securities issued by companies located across the world. The fund may invest in domestic companies as well as those located in emerging markets. It aims to widely diversify its investments to reflect asset allocation in a number of countries. This global mutual fund returned 24.29% over the last one year period.

The fund manager is Matthew Benkendorf and he has managed this global mutual fund since 2009.

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