Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios, selected after careful research, global mutual funds offer a secure and attractive opportunity for investors.

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, investors can click here to see the complete list of funds.

Dreyfus Worldwide Growth A (PGROX - MF report) invests a lion’s share of its assets in companies throughout the globe. The fund invests a minimum of 25% of its assets in domestic and foreign companies each. It focuses on acquiring common stocks of ‘blue-chip’ companies having market capitalizations of at least $5 billion. It may also invest in ADRs that are denominated in the U.S. dollar. It seeks capital growth on a long term basis along with capital preservation and current income. The global mutual fund returned 9.8% over the last one year period.

The fund has an expense ratio of 1.17% as compared to category average of 1.31%.

T. Rowe Price Global Growth Stock Advisor (PAGLX - MF report) seeks long term capital appreciation. It invests a major portion of its assets in both domestic and foreign large cap companies. It invests in a minimum of five countries and invests a minimum of 40% of its assets in foreign companies which may vary to 30% during unfavorable market conditions. The global mutual fund returned 13.4% over the last one year period.

R. Scott Berg is the fund manager and has managed the fund since 2008.

Lord Abbett Diversified Equity Strategy A (LDSAX - MF report) invests in underlying funds which are controlled by Lord, Abbett & Co. LLC. These underlying funds invest in both growth and/or value stocks of companies all over the globe including those from emerging countries. The global mutual fund returned 6.7% over the last one year period.

As of December 2014, this fund held 9 issues with 20.02% of its assets invested in Lord Abbett Affiliated I.

Fidelity Series All-Sector Equity (FSAEX - MF report) seeks capital growth over the long run. The fund invests heavily in equities of companies located throughout the world. It focuses on acquiring stocks of companies that are undervalued and have impressive growth potential. Factors including financial strength and economic conditions are considered to invest in companies. The global mutual fund returned 14.2% over the last one year period.

The fund has an expense ratio of 0.65% as compared to category average of 1.20%.

T. Rowe Price Global Stock (PRGSX- MF report) invests in prominent companies across the globe. The fund largely invests in diversified industries from the developed nations and also invests a small portion in emerging economies. The fund invests in a minimum of five countries including the U.S. A minimum of 40% of its assets are invested in foreign companies. The global mutual fund returned 9.7% over the last one year period.

David J. Eiswert is the fund manager and has managed the fund since 2012.

To view the Zacks Rank and past performance of all global mutual funds, investors can click here to see the complete list of funds.