Top 5 Precious Metals Mutual Funds

Zacks Investment Research
December 16, 2011

Mutual funds investing in precious metals can be a source of comfort to investors when markets are heading south and the economy is passing through choppy weather. This is also a period when they generate higher returns on a consistent basis, even outperforming stocks. A portfolio with the presence of even a small amount of precious metals securities can provide sufficient diversification as well as protection against inflation. Precious metals funds are the brightest choice for investing in this sector since they possess the advantages of professional management and a wide portfolio.

Below we will share with you 5 top rated precious metals mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all precious metals funds, then click here.

U.S. Global Investors Gold and Precious Metals (NASDAQ:USERX - News) seeks capital appreciation over the long term. The fund invests a large proportion of its assets in companies whose primary operations are related to gold and other precious metals. The precious metals fund has a ten year annualized return of 25.26%.

The precious metals mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.80% compared to a category average of 1.39%.

First Eagle Gold A (NASDAQ:SGGDX - News) invests the majority of its assets in gold or related instruments or in companies principally operating in the gold industry. Not more than 20% of the fund’s assets may be utilized to purchase stocks from unrelated sectors. This precious metals mutual fund returned 4.91% in the last one year period.

Rachel Benepe is the fund manager and she has managed this precious metals fund since 2009.

OCM Gold (NASDAQ:OCMGX - News) seeks capital appreciation. The fund invests in domestic and foreign companies in the gold mining industry. It focuses on purchasing common stocks and may also invest in precious metals producers. The precious metals fund has a five year annualized return of 12.88%.

As of October 2011, this precious metals mutual fund held 61 issues, with 13.14% of its total assets invested in Goldcorp, Inc.

Fidelity Select Gold (NASDAQ:FSAGX - News) invests the majority of its assets in companies whose principal operations are related to gold, and in gold bullion and coins. Up to 25% of the fund’s assets may be invested in gold and other precious metals through a wholly-owned subsidiary. It is non-diversified and a no load fund.

The precious metals fund has a three year annualized return of 32.22%.

GAMCO Gold AAA (NASDAQ:GOLDX - News) seeks long term capital growth. The fund invests at least 80% of its net assets in domestic and foreign companies which engage in gold-related activities. A substantial portion of the fund’s assets are utilized to purchase foreign securities. The precious metals fund has a ten year annualized return of 23.42%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.44% compared to a category average of 1.39%.

To view the Zacks Rank and past performance of all precious metals mutual funds, then click here.

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.



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