Top 5 Zacks #1 Ranked Energy Mutual Funds

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Mutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well diversified portfolios. This is borne out by the fact that on many occasions, natural resources funds have outperformed the next closest domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors where fast depleting reserves coupled with rising demand have led to a steady increase in both commodity and stock prices. Energy mutual funds greatly reduce the risk involved in investing in this sector because they hold widely diversified portfolios.

Below we will share with you 5 top rated energy 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 energy funds, investors can click here to see the complete list of funds.

BlackRock All-Cap Energy & Resources Investor A (NASDAQ:BACAX - News) seeks long-term capital appreciation. The fund invests heavily in equity securities of domestic and foreign energy and natural resource companies. This energy mutual fund is non-diversified and has a three year annualized return of 19.18%.

The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.34% compared to a category average of 1.61%.

ProFunds Oil Equipment Services & Distribution (NASDAQ:OEPIX - News) invests the majority of its assets in equity securities or derivatives whose daily return corresponds to that of the Dow Jones U.S. Oil Equipment, Services & Distribution index. The energy mutual fund has a three year annualized return of 27.46%.

The fund manager is Hratch Najarian and he has managed this energy mutual fund since 2011.

Nuveen Tradewinds Global Resources A (NASDAQ:NTGAX - News) seeks capital growth over the long term. The fund invests a large proportion of its assets in equity securities of energy and natural resources companies worldwide. The energy mutual fund has a three year annualized return of 19.06%.

As of November 2011, this energy mutual fund held 61 issues, with 3.88% of its total assets invested in Newcrest mining Limited.

Calvert Global Alternative Energy A (NASDAQ:CGAEX - News) invests a large share of its assets in domestic and foreign companies from the alternative energy sector. The fund focuses on acquiring common stocks of small and mid-cap companies. The energy mutual fund has a three year annualized return of -13.28%.

The energy mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.85% compared to a category average of 1.61%.

Putnam Global Natural Resources A (NASDAQ:EBERX - News) seeks capital growth. The fund primarily invests in common stocks of energy and natural resources companies across the world. It focuses on investing in large and mid-cap companies. The energy mutual fund has a three year annualized return of 14.52%.

The fund manager is Steven Curbow and he has managed this energy mutual fund since 2008.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

Read the analyst report on BACAX

Read the analyst report on OEPIX

Read the analyst report on NTGAX

Read the analyst report on CGAEX

Read the analyst report on EBERX



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