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.
Invesco Gold & Precious Metals Investor (FGLDX) seeks capital growth on a long-term basis. The fund purchases securities of companies whose primary operations are related to palladium, platinum, silver and diamonds. The fund may invest all its assets in foreign securities of companies from the gold and precious metals sector. The precious metals fund has a ten year annualized return of 11.16%.
This precious metals mutual fund has an expense ratio of 1.27% compared to a category average of 1.42%.
First Eagle Gold A (SGGDX) invests a large share of its assets directly in companies involved in basic operations of gold. Investments are also made in gold mining finance companies and operating companies having mines with long, medium or short life. The precious metals mutual fund has a ten year annualized return of 10.44%.
The fund manager is Rachel B. Benepe and has managed this precious metals mutual fund since 2009.
Rydex Precious Metals Investor (RYPMX) seeks capital growth. A 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. In order to gain international exposure the fund invests in American Depository Receipts.
As of March 2013, this precious metals mutual fund held 38 issues with 11.35% of its total assets invested in Freeport-McMoRan Copper & Gold Class B.
OCM Gold Investor (OCMGX) invests a majority of its assets in global and international companies, irrespective of market size, involved in the gold mining industry. The precious metals fund has a ten year annualized return of 9.53%.
The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.99% compared to a category average of 1.42%.
Tocqueville Gold (TGLDX) seeks capital growth on a long-term basis. The fund invests a large share of its assets in companies related to gold and other precious metals located worldwide. Investments are also made in developed and emerging markets. The precious metals fund has a ten year annualized return of 12.56%.
The fund manager is Douglas B. Groh and has managed this precious metals mutual fund since 2011.
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 at http://www.zacks.com/funds.
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