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.

As of July 2015, AXEAX held 67 issues with 3.73% of its assets invested in Bayer AG.

T. Rowe Price European Stock (PRESX - MF report) seeks long-term capital appreciation. PRESX invests a major portion of its assets in companies that are located in Europe or whose operations are related to this region. PRESX generally invests in common stocks of companies irrespective of their market capitalizations. PRESX emphasizes on quality management and strong cash flows to select its investment and allocates its assets in a minimum of five countries from the region. The T. Rowe Price European Stock fund returned 1.9% in the year-to-date frame.

PRESX has an expense ratio of 0.96% as compared to category average of 1.43%.

Fidelity Europe (FIEUX - MF report) invests a majority of its assets in companies and other securities from European region. FIEUX focuses on acquiring common stocks of companies located in different European nations. Factors such as financial strength and economic condition are considered before investing in a company. The Fidelity Europe fund returned 3.8% in the year-to-date frame.

Stefan Lindblad is the fund manager and has managed FIEUX since 2013.

Putnam Europe Equity A (PEUGX - MF report) seeks growth of capital. PEUGX primarily invests in common stocks of large and mid cap European companies. PEUGX uses a “blend” strategy to invest in a company depending on factors including valuation, growth prospect and cash flows. Though PEUGX generally focuses on acquiring stocks of companies from developed ratios, PEUGX may also invest in securities from emerging markets, like ones that are located in Eastern Europe. The Putnam Europe Equity A fund returned 4.7% in the year-to-date frame.

As of June 2015, PEUGX held 93 issues with 4.09% of its assets invested in Novartis AG (NVR).