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.
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 4.62%.
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 8.68%.
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%.
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 5.9%.
The fund manager is Andrew Lees and he has managed this precious metals mutual fund since January 2008.
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 1.12%.
As of June 2012, this precious metals fund held 36 issues with 10.33% of its total assets invested in Freeport-McMoRan Copper & Gold Class B.
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 10%.
The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.20% 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.
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