Top Zacks #1 Ranked Precious Metals Funds

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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.

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 13.08%.

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 15.89%.

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.

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 9.47%.

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

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 15.44%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.73% compared to a category average of 1.40%.

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 14.96%.

Caesar M.P. Bryan is the fund manager and has managed this precious metals fund since 1994.

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 FSAGX

Read the analyst report on USERX

Read the analyst report on ^MIDSX

Read the analyst report on OCMGX

Read the analyst report on GOLDX



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