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.

American Century Global Gold (BGEIX) seeks current income and capital growth. The majority of the fund’s assets are invested in companies dealing in gold. This includes firms whose primary operations include mining, processing and exploration activities. The precious metals mutual fund has a ten year annualized return of 11.46%.

Lynette Pang is the fund manager and has managed this precious metals fund since 2010.

Fidelity Select Gold (FSAGX) 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. The precious metals fund has a ten year annualized return of 11.96%.

The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.89% compared to a category average of 1.40%.

U.S. Global Investors Gold and Precious Metals (USERX) 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 13.94%.

As of March 2012, this precious metals mutual fund held 100 issues, with 5.00% of its total assets invested in Harmony Gold Mining Co., Ltd. ADR.

Midas (MIDSX) invests at least 65% of its assets are invested in companies involved in the mining, processing and distribution of precious metals. Up to 35% of its assets may be invested in companies deriving a share of its revenues from the precious metals sector. The precious metals fund has a ten year annualized return of 6.49%.

Thomas B. Winmill is the fund manager and has managed this precious metals fund since 2002.

Gabelli Gold AAA (GOLDX) seeks capital growth over the long term. The fund invests the majority of its net assets in domestic and foreign companies which engage in gold-related activities. The precious metals fund has a ten year annualized return of 14.05%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.46% compared to a category average of 1.40%.

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 BGEIX

Read the analyst report on FSAGX

Read the analyst report on USERX

Read the analyst report on ^MIDSX

Read the analyst report on GOLDX



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