As the global appetite for energy continues to increase rapidly, governments and corporations alike are devoting greater resources for the discovery of new energy sources as well as the development of more efficient technology in this domain. In fact, newer economic powerhouses such as China are discovering that the going is even tougher for them. Prices of these invaluable resources continue to rise at a steady rate and the energy sector is clearly a lucrative investment option. Mutual funds are a superior option for forays into the industry as they reduce risks involved by holding 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.
Calvert Global Alternative Energy A (CGAEX) seeks capital appreciation over the long term. It invests a lion’s share in domestic and foreign companies whose primary operations are related to the alternative energy sector. At least 25% of its total assets are invested in the alternative energy industry. The non-diversified fund has returned 25.0% in the last one year period.
Treasa Ni Chonghaile is the fund manager and has managed the fund since 2007.
Guinness Atkinson Global Energy (GAGEX) invests heavily in equity securities of domestic and foreign companies engaged in exploration, discovery and distribution of energy as well as production of alternative energy. The non-diversified mutual fund has returned 13.66% in the last one year period.
The energy mutual fund has an expense ratio of 1.34% as compared to the category average of 1.60%.
Rydex Series Trust Energy (RYEIX) seeks capital growth. It invests almost all of its assets in domestic energy companies and derivatives. It invests small to mid-cqap companies and may also buy American Depositary Receipts for exposure to non-US energy firms. The non-diversified mutual fund has returned 10.54% in the last one year period.
As of December 2013, this energy mutual fund held 98 issues with 5.85% of its assets invested in Exxon Mobil Corporation.
JHancock Natural Resources 1 (JINRX) seeks total return over the long term. The fund invests heavily in equity and related securities of global companies that are related to the natural resources industry, including those from emerging markets. Investments are focused on those companies which can profit from the future demand growth of natural resources. The energy mutual fund returned -2.77% in the last one year period.
The energy mutual fund has an expense ratio of 1.11% as compared to the category average of 1.53%.
Waddell & Reed Energy A (WEGAX) invests a large portion of its assets in companies whose primary operations are related to the energy industry. The fund may invest all of its assets in foreign securities. The energy mutual fund has returned 17.59% over the last one year period. David P. Ginther is the fund manager and has managed the fund since 2006.
To view the Zacks Rank and past performance of all energy mutual funds, investors click here to see the complete list of funds.
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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.
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