Top 5 Zacks #1 Ranked Precious Metals Funds

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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, investors can click here to see the complete list of funds.

Invesco Gold & Precious Metals Investor Fund (FGLDX) invests a majority of its assets in equity securities of companies involved in mining, processing or dealing of precious metals. The fund may also invest directly in gold bullion. The precious metals fund has a five year annualized return of 5.19%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.23% compared to a category average of 1.40%.

Rydex Precious Metals Investor Fund (RYPMX) seeks to generate long term capital appreciation by investing a majority of its assets in precious metal companies. The fund also invests in publicly traded derivative contracts. This precious metals mutual fund is non-diversified and has a five year annualized return of -0.2%.

As of May 2012, this precious metals fund held 36 issues with 10.09% of its total assets invested in Freeport-McMoRan Copper & Gold Class B.

Oppenheimer Gold & Special Minerals A (OPGSX) invests primarily in domestic and foreign companies whose major operations include mining, processing or dealing in metals and minerals. The precious metals fund has a five year annualized return of 3.94%.

The fund manager is Shanquan Li and he has managed this precious metals mutual fund since January 1997.

Tocqueville Gold Fund (TGLDX) seeks long term capital growth by investing a large share of its assets in equity securities of domestic and foreign companies engaged in mining and processing of gold. The fund has exposure to developed as well as emerging markets. The precious metals mutual fund has a five year annualized return of 7.96%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.25% compared to a category average of 1.40%.

First Eagle Gold A (SGGDX) invests directly in gold and other precious metals. The fund may also invest in financial instruments issued by companies principally engaged in the gold industry, including gold finance companies. This precious metals mutual fund is non-diversified has a five year annualized return of 8.86%.

The fund manager is Rachel Benepe and he has managed this precious metals mutual fund since January 2009.

To view the Zacks Rank and past performance of all precious metals 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 FGLDX

Read the analyst report on RYPMX

Read the analyst report on OPGSX

Read the analyst report on TGLDX

Read the analyst report on SGGDX



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