With every passing year, the world's appetite for energy
continues to increase steadily. Governments and corporations alike
are therefore 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 7.13%.
The fund manager is Frederick Fromm and he has managed this
energy mutual fund since 2003.
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 9.85%.
The energy mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.82% compared to a category average
of 1.61%.
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 1.07%.
As of July 2012, this energy mutual fund held 52 issues, with
4.32% of its total assets invested in Newcrest Mining Limited.
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 5.78%.
The fund manager is Andrew Lees and he has managed this energy
mutual fund since 2008.
Ivy Global Natural Resources A
(
IGNAX
) invests the majority of its assets in equity securities of
companies, whose primary operations are related to natural
resources, including suppliers and service providers. The fund
focuses on investing in foreign firms or domestic firms whose
primary operations are conducted abroad. The energy mutual fund has
a ten year annualized return of 0.46%.
The energy mutual fund has a minimum initial investment of $500
and an expense ratio of 1.41% compared to a category average of
1.45%.
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
(IGNAX): ETF Research Reports
(NTGAX): ETF Research Reports
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