nternational mutual funds invest in markets outside of the United States and across the globe. These funds can be good for diversifying and adding balance to a portfolio. Generally, international funds are more volatile than their domestic counterparts. However, the rewards of investing in foreign markets can be many, allowing investors to fatten their wallets with more than just local opportunities.

1. Understand the difference between international funds and global funds. International funds typically focus on investing outside the United States; global funds invest both inside and outside of the United States.

2. Recognize that investing in international mutual funds provides a way of breaking into foreign markets without the risks brought on by investing with little applicable knowledge. Professional mutual fund managers bring experience and in-depth research to the table, boosting your chances of profiting from your investment.

3. Carefully evaluate the level of risk you can take and your investment time horizon.

4. Determine the portion of your assets you can afford to invest in international mutual funds.

5. Understand that international mutual funds may invest in stocks and/or bonds from markets around the world. An international fund may focus on a particular market or a combination of markets.

6. Recognize that you may need to sit out some rough times in order to realize an international fund's full potential.

7. Consider the fact that international funds may help you to lower your overall investment risk. As the world's markets do not move exactly in tune with each other, you could capitalize on a thriving market in one region, even while trouble brews in another country.

8. Research and compare international mutual funds online, using MorningStar.com.

9. Visit the websites of the funds that interest you and request or download prospectuses.

10. Contact a financial adviser to discuss the portion of your portfolio best allocated to international mutual funds. With the adviser's help, invest in the mutual funds best suited to your goals, risk tolerance and time horizon.

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