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.
Guinness Atkinson Alternative Energy (GAAEX) seeks capital growth over the long term. The fund invests heavily in domestic and foreign companies from the alternative energy sector. The fund invests in companies regardless of their market capitalization and may also invest in developing economies. The energy mutual fund returned 62.70% in the last one year period.
The fund manager is Edward Guinness and he has managed this energy mutual fund since 2007.
ProFunds Oil Equipment Services & Distribution (OEPSX) invests the majority of its assets in equity securities or derivatives whose daily return corresponds to that of the Dow Jones U.S. Oil Equipment, Services & Distribution index. The energy mutual fund returned 38.60% in the last one year period.
The energy mutual fund has an expense ratio of 2.82% compared to a category average of 1.63%.
JHancock2 Natural Resources 1 (JINRX) seeks total return over the long term. The fund 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. The energy mutual fund returned 3.28% in the last one year period.
As of October 2013, this energy mutual fund held 85 issues, with 3.74% of its total assets invested in First Quantum Minerals Ltd.
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 returned 28.67% in the last one year period. 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 returned 0.03% in the last one year period.
The energy mutual fund has an expense ratio of 1.45% compared to a category average of 1.52%.
To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of funds.
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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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