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 (RYPMX) invests majority of its assets in precious metals companies that are traded in the US. Investments can also be made in derivatives and small-cap and mid-cap companies. It may also invest in ADRs and government derivatives. This non-diversified precious metals fund has a five year annualized return of -5.93%.
The fund has an expense ratio of 1.25% as compared to category average of 1.41%.
Fidelity Select Gold (FSAGX) seeks capital growth over long run. It invests heavily in companies whose principal operations are related to gold as well as in gold bullion or coins. A maximum of 25% of its assets are invested in precious metals via a wholly owned subsidiary. This non-diversified precious metals fund has a five year annualized return of -7.50%.
Joe Wickwire is the fund manager and has managed this fund since 2007.
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. This non-diversified precious metals fund has a five year annualized return of -6.26%.
As of March 2014, this fund held 68 issues with 12.16% of its assets invested in Goldcorp, Inc.
Tocqueville Gold (TGLDX) seeks long-term capital growth. It invests a large share of its assets in companies across the globe involved in mining and processing gold. 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 1.06%.
The fund has an expense ratio of 1.34% as compared to category average of 1.41%.
Van Eck Global Hard Assets A (GHAAX) invests a lion’s share of its assets in companies and other securities whose operations are related to “hard assets”. These “hard assets” comprise gold and other precious metal, industrial metal, and energy among others. This non-diversified fund may invest a maximum of 20% in investment companies, which may also include ETFs. This non-diversified precious metals fund has a five year annualized return of 9.75%.
Shawn T. Reynolds is the fund manager and has managed this fund since 2010.
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 RYPMX
Read the analyst report on FSAGX
Read the analyst report on BGEIX
Read the analyst report on TGLDX
Read the analyst report on GHAAX
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