Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.
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.
Tocqueville Gold (TGLDX) seeks long-term capital growth. It invests a large share of its assets in companies related to gold and other precious metals located worldwide. Investments are also made in developed and emerging markets. The precious metals fund has a five year annualized return of 4.73%.
The fund has a minimum initial investment of $1,000 and has an expense ratio of 1.34% compared to category average of 1.40%.
OCM Gold Investor (OCMGX) seeks capital growth over the long term. It invests a majority of its assets in global and international companies, irrespective of market size, involved in the gold mining industry. The precious metals fund has a five year annualized return of -0.50%.
The fund manager is Greg M. Orrell and has managed this precious metals mutual fund since 1988.
Vanguard Precious Metals and Mining (VGPMX) invests a lion’s share of its assets in domestic and foreign companies that are mainly involved in mining, exploration and distribution of metals. All of its assets may be invested in foreign companies. A maximum of 20% may be invested in gold and silver apart from precious metal bullion. The precious metals fund has a five year annualized return of 4.63%.
As of December 2013, this non-diversified fund held 44 issues with 9.41% of its assets invested in Johnson Matthey PLC.
Oppenheimer Gold & Special Minerals A (OPGSX) seeks capital growth. It invests primarily in those companies who primarily mine or deal in gold. Apart from domestic companies, the fund may also invest in companies from developing or emerging economies. The precious metals fund has a five year annualized return of 1.44%.
The fund has an expense ratio of 1.23% as compared to category average of 1.40%.
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 five year annualized return of -2.98%.
The fund manager is William Martin and has managed this precious metals mutual fund since 1992.
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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