Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.
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.
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 five year annualized return of 15.06%.
USAA Precious Metals and Minerals (NASDAQ:USAGX - News) seeks protection against inflation and long term capital growth. The fund invests the majority of its assets in domestic and foreign companies with primary operations in the precious metals sector. The precious metals fund has a ten year annualized return of 26.36%.
The precious metals mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.15% compared to a category average of 1.40%.
GAMCO Gold AAA (GOLDX) invests at least 80% of its 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 three year annualized return of 19.67%.
Caesar M.P. Bryan is the fund manager and has managed this precious metals fund since 1994.
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 14.93%.
As of September 2011, this precious metals mutual fund held 61 issues, with 13.15% of its total assets invested in Goldcorp, Inc.
First Eagle Gold A (NASDAQ:SGGDX - News) invests a large proportion 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 unrated sectors. This precious metals mutual fund returned 3.46% in the last one year period.
The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.22% compared to a category average of 1.40%.
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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