As the global appetite for energy continues to increase rapidly, governments and corporations alike are devoting greater resources for the discovery of new energy sources as well as the development of more efficient technology in this domain. In fact, newer economic powerhouses such as China are discovering that the going is even tougher for them. Prices of these invaluable resources continue to rise at a steady rate and the energy sector is clearly a lucrative investment option. Mutual funds are a superior option for forays into the industry as they reduce risks involved by holding widely 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.
Waddell & Reed Energy A (WEGAX) seeks growth in capital appreciation. A large portion of its assets is parked in companies whose primary operations are related to the energy industry. The energy mutual fund has a three year annualized return of 10.62%.
The fund manager is David P. Ginther. He has managed this energy mutual fund since 2006.
BlackRock All-Cap Energy & Resources Investor A (BACAX) invests most of its assets in global companies which are involved in energy, utility and natural resources. A minimum of 25% of its assets are invested in companies related to energy and natural resources. The energy mutual fund has a three year annualized return of 2.65%.
As of May 2013, this energy mutual fund held 41 issues, with 8.52% of its total assets invested in Chevron Corp.
RS Global Natural Resources A (RSNRX) seeks capital growth on a long-term basis. The fund invests most of its assets in securities of those global natural resources companies. These companies should have a presence in a minimum of three countries. This energy mutual fund has a three year annualized return of 2.31%.
The fund manager is Andrew J. Pilara, Jr. He has managed this energy mutual fund since 1995.
JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of those global companies which are related to the natural resources industry, including those from emerging markets. Investments are focused on those companies which can profit from the future demand growth of natural resources. This energy mutual fund has a three year annualized return of 0.97%.
The fund manager is John B. O'Toole. He has managed this energy mutual fund since 2009.
T. Rowe Price New Era (PRNEX) seeks growth in capital on a long term basis. At least two thirds of its assets are invested in natural resources companies. A minimum of 50% of its assets are invested in domestic securities. A maximum of 50% can be invested in securities issued by foreign companies. This energy mutual fund has a three year annualized return of 7.36%. The energy mutual fund has an expense ratio of 0.67% compared to a category average of 1.49%.
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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