Mutual funds investing in precious metals can be a source of
comfort to investors when markets are heading south and the economy
is passing through choppy weather. This is also a period when they
generate higher returns on a consistent basis, even outperforming
stocks. A portfolio with the presence of even a small amount of
precious metals securities can provide sufficient diversification
as well as protection against inflation. Precious metals funds are
the brightest choice for investing in this sector since they
possess the advantages of professional management and a wide
portfolio.
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
.
American Century Global Gold
(BGEIX) seeks current income and capital growth. The majority of
the fund's assets are invested in companies dealing in gold. This
includes firms whose primary operations include mining, processing
and exploration activities. The precious metals mutual fund has a
ten year annualized return of 11.46%.
Lynette Pang is the fund manager and has managed this precious
metals fund since 2010.
Fidelity Select Gold
(FSAGX) invests the majority of its assets in companies whose
principal operations are related to gold, and in gold bullion and
coins. Up to 25% of the fund's assets may be invested in gold and
other precious metals through a wholly-owned subsidiary. The
precious metals fund has a ten year annualized return of
11.96%.
The precious metals mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.89% compared to a category
average of 1.40%.
U.S. Global Investors Gold and Precious Metals
(USERX) seeks capital appreciation over the long term. The fund
invests a large proportion of its assets in companies whose primary
operations are related to gold and other precious metals. The
precious metals fund has a ten year annualized return of
13.94%.
As of March 2012, this precious metals mutual fund held 100
issues, with 5.00% of its total assets invested in Harmony Gold
Mining Co., Ltd. ADR.
Midas
(MIDSX) invests at least 65% of its assets are invested in
companies involved in the mining, processing and distribution of
precious metals. Up to 35% of its assets may be invested in
companies deriving a share of its revenues from the precious metals
sector. The precious metals fund has a ten year annualized return
of 6.49%.
Thomas B. Winmill is the fund manager and has managed this
precious metals fund since 2002.
Gabelli Gold AAA
(GOLDX) seeks capital growth over the long term. The fund invests
the majority of its net assets in domestic and foreign companies
which engage in gold-related activities. The precious metals fund
has a ten year annualized return of 14.05%.
The precious metals mutual fund has a minimum initial investment
of $1,000 and an expense ratio of 1.46% compared to a category
average of 1.40%.
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 at
http://www.zacks.com/funds
.
View All Zacks #1 Ranked Mutual Funds
(BGEIX): ETF Research Reports
(FSAGX): ETF Research Reports
(GOLDX): ETF Research Reports
(MIDSX): ETF Research Reports
(USERX): ETF Research Reports
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