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.
Franklin Natural Resources A (FRNRX) seeks capital appreciation and income. The fund invests most of its assets in equity and debt securities of those companies involved in natural resources. The company may invest a small portion in equity and debt securities issued by foreign companies with market cap not more than $1.5 billion. The energy mutual fund has a three year annualized return of 6.04%.
The fund manager is Frederick Fromm and he has managed this energy mutual fund since 2003.
Putnam Global Natural Resources A (EBERX) invests on purchasing common stocks of mid-cap or large firms. It may purchase both value or growth stocks of companies whose principal operations are related to the energy sector. This energy mutual fund has a three year annualized return of 8.56%.
The energy mutual fund has an expense ratio of 1.29% compared to a category average of 1.49%.
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 7.54%.
As of June 2013, this energy mutual fund held 95 issues, with 3.51% of its total assets invested in Schlumberger NV.
Waddell & Reed Energy A (WEGAX) invests a large portion of its assets in companies whose primary operations are related to the energy industry. The fund may invest all of its assets in foreign securities. The energy mutual fund has a three year annualized return of 13.41%. The fund manager is David P. Ginther and he has managed this energy mutual fund since 2006.
RS Global Natural Resources A (RSNRX) seeks capital growth on a long-term basis. The fund invests most of its assets in securities of global natural resources companies. These companies should have a presence in a minimum of three countries. The energy mutual fund has a three year annualized return of 7.07%.
The energy mutual fund has an expense ratio of 1.45% 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.Read the analyst report on FRNRXRead the analyst report on EBERXRead the analyst report on PRNEXRead the analyst report on WEGAXRead the analyst report on RSNRX
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