Precious Metals provide a hedge against the broader market slump during an economic downturn. When economic activities are sluggish and inflation is at a high, precious metals stand out as an investment avenue outperforming other asset classes. However, investments in precious metals involve a substantial amount of risk given their volatile nature. Mutual funds capturing the essence of this particular asset class, with their diversified portfolio and expertise, are therefore the appropriate choice for investors seeking to get exposure in the precious metal space.
Below we will share with you 5 top rated precious metals 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 precious metals, investors can click here to see the complete list of funds.
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. It has exposure in developed as well as emerging markets. The mutual fund has a five year annualized return of 11.27%.
The fund manager is Douglas B. Groh and he has managed this mutual fund since January 2012.
Invesco Gold & Precious Metals Investor Fund (FGLDX) seeks capital growth over the long term. A majority of its net assets are primarily invested in equities of companies involved in mining, processing or dealing of precious metals. The fund may also invest directly in gold bullions. The fund has a five year annualized return of 9.01%.
As of December 2011, this fund held 37 issues (net), with 6.76% of its total assets invested in Yamana Gold, Inc.
Vanguard Precious Metals and Mining Fund (VGPMX) invests a major portion of its assets in equities of companies principally engaged in the business of precious metals. It invests in U.S as well as foreign companies without any ceiling on its foreign exposure. The fund has a five year annualized return of 1.07%.
The precious metals fund has a minimum initial investment of $3,000 and an expense ratio of 0.29% compared to a category average of 1.39%.
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. The non-diversified precious metals mutual fund has a five year annualized return of 3.32%
The fund manager is Michael P. Byrum and he has managed this mutual fund since August 2000.
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. The non-diversified precious metals fund has a five year annualized return of 11.11%.
The mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.20% compared to a category average of 1.39%.
To view the Zacks Rank and past performance of all precious metals 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.
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