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 23.6%.
The energy mutual fund has an expense ratio of 1.45% compared to a category average of 1.46%.
BlackRock Energy & Resources A (SSGRX) invests the majority of its assets in equity securities from the energy and natural resources sector. The fund invests its assets without respect to the company’s size or geographical location. The energy mutual fund has a three year annualized return of 25.01%.
The fund manager is Daniel J. Rice and he has managed this energy mutual fund since 2005.
Ivy Global Natural Resources A (IGNAX) seeks capital growth over the long term. The fund invests a large proportion of its assets in equity securities of domestic and foreign companies involved in the energy and natural resources businesses. The mutual fund has a three year annualized return of 20.14%.
As of December 2011, this energy mutual fund held 103 issues, with 5.26% of its total assets invested in Xstrata Pvt. Ltd. Co.
Fidelity Select Energy Service (FSESX) seeks capital appreciation. It invests a majority of its assets in securities of companies in the energy services business. These companies typically are service or equipment providers to companies which are engaged in the business of oil, gas, electricity, coal, nuclear, geothermal and solar power. The energy mutual fund has a three year annualized return of 24.19%.
The energy mutual fund has an expense ratio of 0.85% compared to a category average of 1.61%.
Nuveen Tradewinds Global Resources A (NTGAX) seeks capital growth. The fund primarily invests in common stocks of energy and natural resources companies worldwide. A maximum of 35% of its assets are invested in any particular country outside U.S. The energy mutual fund has a three year annualized return of 25.19%.
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.
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