5 Strong Buy Energy Mutual Funds - Mutual Fund Commentary

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As the global appetite for energy continues to increase rapidly, governments and corporations alike are devoting greater resources for the discovery of new energy sources as well as the development of more efficient technology in this domain. In fact, newer economic powerhouses such as China are discovering that the going is even tougher for them. Prices of these invaluable resources continue to rise at a steady rate and the energy sector is clearly a lucrative investment option. Mutual funds are a superior option for forays into the industry as they reduce risks involved by holding 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, investors can click here to see the complete list of funds .

Waddell & Reed Energy A (WEGAX) seeks capital appreciation over the long run. It invests a lion's share of its assets in companies whose primary operations include exploration, discovery, production and distribution of energy and alternative energy sources. It may invest all of its assets in non-US firms. It invests in both value and growth stocks of companies all over the globe including those from emerging countries. This energy mutual fund has a one-year return of 24.8%. This fund has an expense ratio of 1.66% as compared to category average of 1.46%.

Integrity Williston Basin/Mid-North America Stock A (ICPAX) invests a lion's share of its assets in US and non-US companies which gain from resource developments in the Williston Basin area and/or Mid-North America area. It may also invest in development stage companies. The fund seeks long-term capital growth. This energy mutual fund has a one-year return of 32.2%.

As of June 2014, this fund held 53 issues with 6.18% of its assets invested in Halliburton Co.

Ivy Energy A (IEYAX) seeks capital growth. It invests a large portion of its assets in companies having their presence in the energy sector. It invests in energy related companies involved in exploration, production and distribution of energy sources. This energy mutual fund has a one-year return of 24.1%.

This fund has an expense ratio of 1.60% as compared to category average of 1.46%.

Guinness Atkinson Global Energy (GAGEX) invests a major portion of its assets in both domestic and foreign companies of all market capitalization. These companies are involved in the production, exploration or distribution of energy, and also are involved in research and development of alternative energy sources. The fund seeks capital growth over the long run. This non-diversified energy mutual fund has a one-year return of 27.9%.

As of March 2014, this fund held 48 issues with 3.85% of its assets invested in Canadian Natural Resources Ltd.

Invesco Energy Investor (FSTEX) seeks long-term capital growth. It invests major portion of its assets in energy-related industries. It invests mostly in equity securities. This energy mutual fund has a one-year return of 22.2%.

Norman MacDonald is the fund manager and has managed this fund since 2013.

To view the Zacks Rank and past performance of all energy mutual funds, investors 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 in our Mutual Fund Center .


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Mutual Funds


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