Precious metals provide a hedge against the broader market slump during an economic downturn. When economic activities are sluggish and inflation is at a high, precious metals stand out as an investment avenue outperforming other asset classes. However, investments in precious metals involve a substantial amount of risk given their volatile nature. Mutual funds capturing the essence of this particular asset class, with their diversified portfolio and expertise, are therefore the appropriate choice for investors seeking to get exposure in the precious metal space.
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.
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 6.92%.
The fund manager is Shanquan Li and he has managed this precious metals mutual fund since January 1997.
Tocqueville Gold Fund (TGLDX) seeks long term capital growth by investing 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 five year annualized return of 9.99%.
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%.
Invesco Gold & Precious Metals Investor Fund (FGLDX) invests a majority of its assets in equity securities of companies involved in mining, processing or dealing of precious metals. The fund may also invest directly in gold bullion. The precious metals fund has a five year annualized return of 7.76%.
As of March 2012, this precious metals fund held 40 issues with 6.45% of its total assets invested in Goldcorp, Inc.
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 five year annualized return of 2.08%.
The fund manager is Michael P. Byrum and he has managed this mutual fund since August 2000.
First Eagle Gold A (SGGDX) invests directly in gold and other precious metals. The fund may also invest in financial instruments issued by companies principally engaged in the gold industry, including gold finance companies. This precious metals mutual fund is non-diversified has a five year annualized return of 10%.
The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.20% compared to a category average of 1.40%.
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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