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.
Fidelity Select Materials (FSDPX) is a non-diversified fund which seeks capital growth. The fund focusses on purchasing common stocks issued by domestic and foreign companies. It concentrates on companies whose primary operations are related to natural resources. The energy mutual fund has a three year annualized return of 11.69%.
The fund manager is Tobias W. Weloand he has managed this energy mutual fund since 2008.
Rydex Basic Materials (RYBIX) is a non-diversified capital growth seeking fund that invests most of its assets in domestic equity securities and derivatives. It usually invests in small and mid-cap companies. This energy mutual fund has a three year annualized return of -2.01%.
As of March 2013, this energy mutual fund held 88 issues, with 3.33% of its total assets invested in E I Du Pont De Nemours And Co.
ING Global Natural Resources A (LEXMX) invests heavily in equity securities of domestic or foreign companies related to the natural resources industry. A maximum of 50% of its assets may be invested in any single industry. This energy mutual fund has a three year annualized return of 0.72%.
The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.56% compared to a category average of 1.52%.
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. This energy mutual fund has a three year annualized return of 0.72%.
The fund manager is Frederick Fromm and he has managed this energy mutual fund since 2003.
JHancock2 Natural Resources 1 (JINRX) invests a large share of its assets in equity and related securities of companies across the world whose primary operations involve natural resources. The energy mutual fund has a three year annualized return of -2.37%. The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.41% 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.
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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