The European region having both stable developed markets and emerging economies makes up one of the most diverse economic zones in the world. Large volumes of foreign direct investment and high commodity prices have ensured that emerging markets in regions like the Mediterranean and Eastern Europe have continued to grow at a fast pace. European mutual funds taps into the strengths of this vibrant region and are a natural choice for those seeking to grow their investments. Currently in the region, the European Central Bank’s monetary easing program has dragged the euro down but the European exchanges have moved north due to the further decline in the euro currency.

Below we will share with you 5 buy-ranked European mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all European funds, investors can click here to see the complete list of funds.

Henderson European Focus A (HFEAX – MF report) seeks capital growth over the long run. HFEAX invests a lion’s share of its assets in equity securities, which include common and preferred stocks, of companies located in Europe. HFEAX may invest a significant portion of its assets in a particular European country. HFEAX may allocate not more than 15% of its assets in illiquid securities. The Henderson European Focus A fund returned 4.9% in the year-to-date frame.

Stephen Peak is the fund manager and has managed HFEAX since 2001.

Columbia European Equity A (AXEAX – MF report) invests a large chunk of its assets in companies from European nations having impressive growth prospects. AXEAX generally invests in securities from developed nations and may also invest, to a lesser extent, in companies located in developing and emerging economies. AXEAX generally has foreign currencies exposure. The Columbia European Equity A fund returned 3.2% in the year-to-date frame.