Top 5 Zacks #1 Ranked Precious Metals Funds

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Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.

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.

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 5.24%.

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

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 11.5%.

As of December 2011, this precious metals mutual fund held 79 issues, with 5.25% of its total assets invested in Randgold Resources, Ltd. ADR.

Gabelli Gold AAA (GOLDX) invests the majority of its net assets in domestic and foreign companies which engage in gold-related activities. A substantial portion of the fund’s assets are utilized to purchase foreign securities. The precious metals fund has a ten year annualized return of 11.89%.

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%.

OCM Gold Investor (OCMGX) seeks capital appreciation. The fund invests in domestic and foreign companies in the gold mining industry. It focuses on purchasing common stocks and may also invest in precious metals producers. The precious metals fund has a ten year annualized return of 12.4%.

Greg Orrell is the fund manager and has managed this precious metals fund since 1988.

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 10.55%.

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%.

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 ^MIDSX

Read the analyst report on USERX

Read the analyst report on GOLDX

Read the analyst report on OCMGX

Read the analyst report on FSAGX



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