Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past. Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector.
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.
Rydex Precious Metals Investor Fund (RYPMX) seeks to generate long term capital appreciation by investing a majority of its assets in precious metal companies. The fund also invests in publicly traded derivative contracts. This precious metals mutual fund is non-diversified and has a ten year annualized return of 1.42%.
The precious metals have an expense ratio of 1.25% compared to a category average of 1.39%.
Tocqueville Gold Fund (TGLDX) invests a large share of its assets in equity securities of domestic and foreign companies engaged in mining and processing of gold. The fund has exposure to developed as well as emerging markets. The precious metals mutual fund has a ten year annualized return of 8.50%.
The fund manager is John Hathaway and has managed this precious metals mutual fund since 1998.
Fidelity Select Gold (FSAGX) seeks capital growth. Not more than 25% of its assets are invested in gold and precious metals. Companies whose primary operations are related to gold and few precious metals like silver, diamonds, platinum are considered for investments. The precious metals fund has a ten year annualized return of 4.99%.
As of August 2013, this precious metals fund held 126 issues with 10.06% of its total assets invested in Goldcorp, Inc.
American Century Global Gold (BGEIX) invests in securities of those global companies whose primary operations are related to gold. Investments are made with the purpose of attaining growth in capital and dividends by investing in companies which are involved in processing, mining, fabricating and distributing gold. The precious metals fund has a ten year annualized return of 4.28%.
The precious metals mutual fund has an expense ratio of 0.68% compared to a category average of 1.39%.
Gabelli Gold AAA (GOLDX) seeks capital growth on a long-term basis. A majority of assets are invested in equity of those domestic and foreign companies whose primary operations are related to gold and gold bullion. The fund focusses on investing in undervalued companies which have the potential to provide high returns. The precious metals fund has a ten year annualized return of 6.26%.
The fund manager is Caesar M.P. Bryan and has managed this precious metals mutual fund since 1994.
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
Read the analyst report on RYPMX
Read the analyst report on TGLDX
Read the analyst report on FSAGX
Read the analyst report on BGEIX
Read the analyst report on GOLDX
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