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Top 5 Zacks#1 Ranked Precious Metals Funds

Zacks Investment Research

Mutual funds investing in precious metals can be a source of comfort to investors when markets are heading south and the economy is passing through choppy weather. This is also a period when they generate higher returns on a consistent basis, even outperforming stocks. A portfolio with the presence of even a small amount of precious metals securities can provide sufficient diversification as well as protection against inflation. Precious metals funds are the brightest choice for investing in this sector since they possess the advantages of professional management and a wide portfolio.

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 appreciation over the long term. The fund invests a large proportion of its assets in companies whose primary operations consist of activities related to gold and other precious metals. The precious metals fund has a five year annualized return of 11.26%.

The precious metals fund has a minimum initial investment of $1,000 and an expense ratio of 1.23% compared to a category average of 1.40%.

Oppenheimer Gold & Special Minerals A (OPGSX) invests primarily in domestic and foreign companies whose major operations include mining, processing or dealing in metals and minerals. The precious metals fund has a five year annualized return of 11.87%.

Shanquan Li is the fund manager and has managed this precious metals fund since 1997.

Rydex Precious Metals (RYPMX) seeks capital growth. The fund invests in domestic precious metals companies.  The majority of its assets are used to purchase equity securities and derivatives. The precious metals fund has a five year annualized return of 5.59%.

As of February 2012, this precious metals mutual fund held 37 issues, with 10.96% of its total assets invested in Freeport-McMoRan Copper & Gold B.

Tocqueville Gold (TGLDX) invests the majority of its assets in gold or companies involved in mining or processing of gold worldwide. The fund may also consider other precious metals for investment purposes. Up to 20% of its total assets may be invested directly in other precious metals. The precious metals fund has a five year annualized return of 13.72%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.25% compared to a category average of 1.40%.

Midas (MIDSX) seeks capital growth. The fund invests at least 65% of its assets are invested in companies involved in the mining, processing and distribution of precious metals. Up to 35% of its assets may be invested in companies deriving a share of its revenues from the precious metals sector. The precious metals fund has a five year annualized return of -1.19%.

Thomas B. Winmill is the fund manager and has managed this precious metals fund since 2002.

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

Read the analyst report on FGLDX

Read the analyst report on OPGSX

Read the analyst report on RYPMX

Read the analyst report on TGLDX

Read the analyst report on ^MIDSX

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