Mutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well diversified portfolios. This is borne out by the fact that in the last five years, natural resources funds have outperformed the next closest domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors where fast depleting reserves coupled with rising demand have led to a steady increase in both commodity and stock prices. Energy mutual funds greatly reduce the risk involved in investing in this sector because they hold widely diversified portfolios.
Below we will share with you 5 top rated energy mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all energy funds, then click here.
Fidelity Select Natural Gas (FSNGX) invests heavily in securities of companies involved in the production of natural gas as well as transmission and distribution activities. The fund also purchases securities issued by explorations companies as well as those firms which provide services and equipment for such activities. The energy mutual fund has a ten year annualized return of 6.08%.
The fund manager is James McElligott and he has managed this energy mutual fund since 2005.
Putnam Global Natural Resources A (EBERX) seeks capital growth over the long term. It primarily invests in common stocks of energy and natural resources companies across the world. It focuses on acquiring value stocks and invests in large and mid-cap companies. The energy mutual fund returned 5.39% over the last one year period.
As of September 2010, this energy mutual fund held 57 issues, with 6.18% of its total assets invested in Rio Tinto PLC.
Invesco Energy (FSTEX) invests at least 80% of its assets are used to purchase securities of energy companies. This includes companies which produce or distribute conventional energy, as well as energy conservation and alternative energy companies. This energy mutual fund has a five year annualized return of 3.11%.
The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.16% compared to a category average of 1.68%.
Vanguard Energy (VGENX) seeks long term capital appreciation. The majority of its assets are used to purchase common stocks of companies whose primary activities are energy related. This energy mutual fund has a ten year annualized return of 12.87%.
The fund manager is Karl E. Bandtel and he has managed this energy mutual fund since 2002.
Aberdeen Natural Resources A (GGNAX) invests the majority of its assets in domestic and foreign companies from the natural resources industry. It invests in companies of all sizes, ranging from well-known firms to smaller companies with significant growth potential. The energy mutual fund has a five year annualized return of 4.07%.
The energy mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.56% compared to a category average of 1.56%.
To view the Zacks Rank and past performance of all energy mutual funds, then click here.
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/mutualfund/
source: www.zacks.com
Mutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well diversified portfolios. This is borne out by the fact that in the last five years, natural resources funds have outperformed the next closest domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors where fast depleting reserves coupled with rising demand have led to a steady increase in both commodity and stock prices. Energy mutual funds greatly reduce the risk involved in investing in this sector because they hold widely diversified portfolios.
Below we will share with you 5 top rated energy mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all energy funds, then click here.
Fidelity Select Natural Gas (FSNGX) invests heavily in securities of companies involved in the production of natural gas as well as transmission and distribution activities. The fund also purchases securities issued by explorations companies as well as those firms which provide services and equipment for such activities. The energy mutual fund has a ten year annualized return of 6.08%.
The fund manager is James McElligott and he has managed this energy mutual fund since 2005.
Putnam Global Natural Resources A (EBERX) seeks capital growth over the long term. It primarily invests in common stocks of energy and natural resources companies across the world. It focuses on acquiring value stocks and invests in large and mid-cap companies. The energy mutual fund returned 5.39% over the last one year period.
As of September 2010, this energy mutual fund held 57 issues, with 6.18% of its total assets invested in Rio Tinto PLC.
Invesco Energy (FSTEX) invests at least 80% of its assets are used to purchase securities of energy companies. This includes companies which produce or distribute conventional energy, as well as energy conservation and alternative energy companies. This energy mutual fund has a five year annualized return of 3.11%.
The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.16% compared to a category average of 1.68%.
Vanguard Energy (VGENX) seeks long term capital appreciation. The majority of its assets are used to purchase common stocks of companies whose primary activities are energy related. This energy mutual fund has a ten year annualized return of 12.87%.
The fund manager is Karl E. Bandtel and he has managed this energy mutual fund since 2002.
Aberdeen Natural Resources A (GGNAX) invests the majority of its assets in domestic and foreign companies from the natural resources industry. It invests in companies of all sizes, ranging from well-known firms to smaller companies with significant growth potential. The energy mutual fund has a five year annualized return of 4.07%.
The energy mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.56% compared to a category average of 1.56%.
To view the Zacks Rank and past performance of all energy mutual funds, then click here.
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/mutualfund/
source: www.zacks.com
