Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past. Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector.
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.
Gabelli Gold AAA (GOLDX) seeks capital growth on a long-term basis. A lrge chunk of its assets are invested in global equity securities issued by companies involved in gold bullion and gold-related activities. The fund may also invest in securities from emerging and developed countries. The precious metals fund has a ten year annualized return of 9.99%.
The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.48% compared to a category average of 1.42%.
American Century Investments Global Gold (BGEIX) is a non-diversified fund seeking steady returns on investments. A majority of investments are made in securities of companies involved in production, distribution and fabrication of gold. The precious metals mutual fund has a ten year annualized return of 8.29%.
The fund manager is Lynette Pang and she has managed this precious metals mutual fund since 2010.
US Global Gold and Precious Metals (USERX) seeks long-term capital appreciation and safety against monetary fluctuations and inflation. A large share of its assets is invested in equity of companies involved in gold related activities. The precious metals mutual fund has a ten year annualized return of 8.29%.
As of March 2013, this precious metals fund held 56 issues with 12.27% of its total assets invested in Goldcorp, Inc.
Vanguard Precious Metals and Mining (VGPMX) seeks long term capital appreciation by investing a majority of its assets in metals or minerals. The fund also invests in publicly traded derivative contracts. It may also invest directly in precious metal bullion and coins. The precious metals fund has a ten year annualized return of 10.58 %.
The precious metals mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.29% compared to a category average of 1.42%.
Van Eck International Investors Gold A (INIVX) is a non-diversified fund which invests a majority of its assets in equity securities of companies involved in mining, processing or dealing of gold-related activities. The fund aims at investing in firms which generate half of its revenue from gold-related activities. The precious metals fund has a ten year annualized return of 12.87%.
The fund manager is Joseph M. Foster he has managed this precious metals mutual fund since 1996.
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
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