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Top 5 Best Performing Utilities Mutual Funds Year to Date

Zacks Equity Research

Even during difficult economic conditions, the demand for essential services such as utilities remains more or less constant. This is why utilities funds are an excellent choice for investors who are seeking a steady income flow through consistent yields from dividends. In fact, investments in this sector are usually considered to be a conservative investment option. Moreover, in the past utilities funds have ventured into emerging markets and provided appreciably higher returns at relatively lower levels of risk.

Below we will share with you the 5 best performing utilities mutual funds year to date.  To view the Zacks Rank and past performance of all utilities funds, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

MFS Utilities Fund A

#2 Buy

11.4%

American Century Utilities

#1 Strong Buy

9.5%

FBR Gas Utility Index

#4 Sell

8.2%

Franklin Utilities A

#1 Strong Buy

7.6%

Fidelity Select Utilities

#4 Sell

7.3%

 

MFS Utilities A (MMUFX) invests the majority of its assets is securities issued by companies from the utilities sector. It focuses on purchasing equity securities but may also purchase debt instruments. The bulk of the debt securities held are rated investment grade. This utilities mutual fund has a three year annualized return of 12.49%.

The utilities mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.04% compared to a category average of 1.27%.

American Century Utilities (BULIX) seeks current income and capital appreciation. The fund a large share of its assets in securities listed on at least one index made up entirely of electricity, natural gas, cable television, water or sanitation services companies. The utilities mutual fund has a three year annualized return of 13.05%.

Lynette Pang is the fund manager and has managed this utilities mutual fund since 2010.

FBR Gas Utility Index Investor (GASFX) invests nearly 85% of its assets in companies from the natural gas distribution and transmission domain. The fund seeks to provide returns identical to that of the American Gas Association Stock Index. This utilities mutual fund has a three year annualized return of 18.33%.

The utilities mutual fund has a minimum initial investment of $2,000 and an expense ratio of 0.71% compared to a category average of 1.27%.

Franklin Utilities A (FKUTX) seeks capital growth and current income. The fund concentrates on purchasing securities of public utilities companies. These are those companies that provide electricity, gas, water and communication services. More than 25% of its assets are invested in the utilities sector. The utilities mutual fund has a three year annualized return of 14.03%.

As of September 2012, this utilities mutual fund held 57 issues, with 4.88% of its total assets invested in Duke Energy Corporation.

Fidelity Select Utilities (FSUTX) invests the majority of its assets in utility companies or those deriving a large share of their revenues from operations in this sector. The fund focuses on acquiring common stocks. It is non-diversified and may invest in both domestic and foreign issuers. The utilities mutual fund has a three year annualized return of 12.46%.

Douglas Simmons is the fund manager has managed this utilities mutual fund since 2006.

To view the Zacks Rank and past performance of all utilities 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

Read the analyst report on MMUFX

Read the analyst report on BULIX

Read the analyst report on GASFX

Read the analyst report on FKUTX

Read the analyst report on FSUTX

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