Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.
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.
Tocqueville Gold (TGLDX) seeks long-term capital growth. It invests a large share of its assets in companies involved in mining and processing gold. These companies can be located worldwide including the ones from developed and emerging markets. The fund also invests in other precious metals. Not more than 20% will be directly invested in gold bullion or precious metals. The precious metals fund has a five year annualized return of 3.62%.
The fund has an expense ratio of 1.34% as compared to category average of 1.41%.
American Century Global Gold (BGEIX) invests in securities of those global companies whose operations are related to gold or other precious metals. Investments are made with the purpose of attaining growth in capital and dividends by investing mostly in companies which are involved in processing, mining, fabricating and distributing gold. The precious metals fund has a five year annualized return of -4.16%.
William Martin is the fund manager and has managed this fund since 1992.
Oppenheimer Gold & Special Minerals A (OPGSX) seeks capital growth. It invests primarily in those companies who primarily mine or deal in gold. Apart from domestic companies, the fund may also invest in companies from developing or emerging economies. The precious metals fund has a five year annualized return of -0.43%.
As of January 2014, this fund held 81 issues with 6.79% of its assets invested in Franco-Nevada Corp.
Rydex Precious Metals Investor (RYPMX) seeks capital growth. Majority of the fund’s assets are invested in domestic companies involved in precious metals. Investments can also be made in derivatives and small-cap and mid-cap companies involved in precious metals. The precious metals fund has a five year annualized return of -2.83%.
The fund has an expense ratio of 1.25% as compared to category average of 1.41%.
Franklin Gold and Precious Metals A (FKRCX) invests a lion’s share in companies involved in gold and precious metals. The fund mainly invests in foreign companies irrespective of their market capitalization. The precious metals fund has a five year annualized return of -2.40%.
Steve M. Land is the fund manager and has managed this fund since 1999.
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.
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Read the analyst report on TGLDX
Read the analyst report on BGEIX
Read the analyst report on OPGSX
Read the analyst report on RYPMX
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