The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of 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.

Wells Fargo Advantage Intrinsic World Equity A ( EWEAX - MF report ) seeks capital growth over the long term. The fund invests the majority of its assets in not less than three countries at the same time, including the U.S., investing a maximum of 25% in a single country. The global mutual fund returned 4% in the last one year period.

The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.46% compared to a category average of 1.44%.

Artisan Global Value Investor ( ARTGX - MF report ) invests a large share of its assets in domestic and foreign equity securities. The fund seeks to acquire securities which are attractively priced compared to their underlying value. The global mutual fund returned 15.01% in the last three year period.

The fund manager is Daniel J. O'Keefe and he has managed this global mutual fund since 2007.

Manning & Napier World Opportunities A ( EXWAX - MF report ) seeks long term growth. The fund invests in companies worldwide, including companies from the U.S. It primarily purchases common stocks but may also invest in ADRs and dollar-denominated foreign securities. The global mutual fund returned 8.55% in the last ten year period.

As of September 2011, this global mutual fund held 83 issues, with 4.64% of its total assets invested in Dreyfus Cash Management Instl.

Virtus Global Infrastructure A ( PGUAX - MF report ) invests a major portion of its assets in equity securities of infrastructure companies. Investments are spread over three countries, one of which is the US. The fund may also invest some portion of its assets in non-infrastructure companies and derivative instruments. The global mutual fund returned 7.39% in the last one year period.

The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.33% compared to a category average of 1.44%.

Henderson Global Equity Income A ( HFQAX - MF report ) seeks to generate high current income. The fund may spread its portfolio across several countries and normally invests in at least three countries. The global mutual fund has a three year annualized return of 11.28%.

The fund manager is Alex Crooke and he has managed this global mutual fund since 2006.

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.