Top 5 Zacks #1 Ranked Energy Mutual Funds

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Ever increasing demand, increased global per capita consumption, newer technologies and disruptive innovations have meant that the energy sector is almost always attractive for investors. Crude oil plays a major part in the energy space and is hovering around a 52 week high, resulting in lower margins for the energy companies. However, it is inevitable that over the long term, volatility in crude oil prices will ease out and the sector will generate above par returns. Mutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well 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.

RS Global Natural Resources A (RSNRX) seeks long-term capital appreciation. The fund invests heavily in shares of companies principally engaged in the energy and natural resources business. At any point in time the fund invests in at least three countries. The fund has a three year annualized return of 22.89%.

The energy mutual fund has an expense ratio of 1.45% compared to a category average of 1.46%.

ProFunds UltraSector Oil & Gas Investor (ENPIX) invests heavily in equity and related securities of companies across the world whose primary operations involve natural resources. The fund selects firms which are expected to gain from increasing demand for natural resources. This energy mutual fund is non-diversified and has a three year annualized return of 24.59%.

As of October 2011, this energy mutual fund held 97 issues, with 16.62% of its total assets invested in Exxon Mobil Corporation.

Vanguard Energy (VGENX) seeks capital growth over the long term. The fund utilizes the majority of its assets to purchase common stocks of companies whose primary activities are energy related, including energy conservation and pollution control. The energy mutual fund has a three year annualized return of 17.22%.

The fund manager is Karl E. Bandtel and he has managed this energy mutual fund since 2002.

JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of companies across the world whose primary operations involve natural resources. The fund selects firms which are expected to gain from increasing demand for natural resources. The energy mutual fund has a three year annualized return of 16.18%.

The energy mutual fund has an expense ratio of 1.12% compared to a category average of 1.46%.

Nuveen Tradewinds Global Resources A (NTGAX) 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 17.61%.

The fund manager is Alberto Jimenez Crespo and he has managed this energy mutual fund since 2006.

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 RSNRX

Read the analyst report on ENPIX

Read the analyst report on VGENX

Read the analyst report on JINRX

Read the analyst report on NTGAX



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