With every passing year, the world's appetite for energy
continues to increase steadily. Governments and corporations alike
are constantly on the lookout for new energy sources or more
efficient technology in this domain. For fast growing economies
such as China and India, the situation is even more acute. Thus,
prices of these invaluable resources are surging and investors
could benefit from the situation by investing in the energy
industry. Energy 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
.
Franklin Natural Resources A
(FRNRX) invests the majority of its assets in equity and debt
securities of natural resources companies. The fund may invest
heavily in small-cap companies. It focuses on acquiring equity
securities, especially common stock. The energy mutual fund has a
three year annualized return of 5.71%.
The energy mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.03% compared to a category average
of 1.42%.
Fidelity Select Energy
(FSENX) seeks capital growth. The fund invests a large share of its
assets in equity securities of companies whose principal operations
are related to the energy sector. The fund purchases both domestic
and foreign securities. The energy mutual fund has a three year
annualized return of 5.54%.
The fund manager is John Dowd and he has managed this energy
mutual fund since 2006.
Rydex Energy Services
(RYVIX) invests the majority of its assets in equity securities
traded in U.S. markets and derivatives from the energy services
sector. The fund focuses on investing in small and mid-cap
companies from the sector. The energy mutual fund is
non-diversified and has a three year annualized return of
6.44%.
As of June 2012, this energy mutual fund held 37 issues, with
11.11% of its total assets invested in Schlumberger NV.
Invesco Energy
(FSTEX) seeks long term capital growth. The fund utilizes a large
proportion of its assets to purchase securities issued by companies
with strong linkages to the energy sector. It focuses on acquiring
equity securities and may invest all its assets in foreign
securities. The energy mutual fund has a three year annualized
return of 3%.
The energy mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.12% compared to a category average
of 1.58%.
Nuveen Tradewinds Global Resources A
(NTGAX) invests the majority of its assets in equity securities of
energy and natural resources companies worldwide. Not more than 40%
of its assets may be utilized to purchase foreign equity
securities. The energy mutual fund has a three year annualized
return of -1.39%.
The fund manager is Andrew J Thelen and he has managed this
energy mutual fund since 2012.
To view the Zacks Rank and past performance of all energy 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
.
View All Zacks #1 Ranked Mutual Funds
(FRNRX): ETF Research Reports
(FSENX): ETF Research Reports
(FSTEX): ETF Research Reports
(NTGAX): ETF Research Reports
(RYVIX): ETF Research Reports
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