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 U.S. equity markets has greatly diminished with its share of the 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 mutual funds, investors can click here to see the complete list of funds.

Invesco Global Growth A (AGGAX –MF report) seeks long-term capital appreciation. The fund invests largely in equity securities and depositary receipts of both U.S. and non-U.S. issuers. It invests in a minimum of three countries, including the U.S. A maximum of 20% of its assets may be invested in firms from emerging economies. It mostly invests in large-cap companies but may also invest a significant amount of its assets in mid-cap companies. The global mutual fund returned 6.2% over the last one year period.

As of September 2014, this fund held 107 issues with 2.12% of its assets invested in Gilead Sciences Inc (GILD).

Dodge & Cox Global Stock (DODWX – MF report) invests in equities of mid to large cap companies from at least three countries. A minimum of 40% of assets are invested in foreign securities including those from emerging nations. It invests a lion's share of its assets in common stocks and preferred stocks or other securities related to them. The global mutual fund returned 8.6% over the last one year period.

The fund has an expense ratio of 0.65% as compared to category average of 1.32%.