Even during difficult economic conditions, the demand for
essential services such as utilities remains more or less constant.
This is why utilities funds are an excellent choice for investors
who are seeking a steady income flow through consistent yields from
dividends. In fact, investments in this sector are usually
considered to be a conservative investment option. Moreover, in the
past utilities funds have ventured into emerging markets and
provided appreciably higher returns at relatively lower levels of
risk.
Below we will share with you 5 top rated utilities 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
utilities funds, investors can
click here to see the complete list of funds
.
Allianz RCM Global Water
(AWTAX) seeks long term capital appreciation by investing majority
of its assets in utility companies that are predominantly engaged
in the water-related business. The fund may invest in non-U.S
companies including emerging markets. At any time, the fund in
exposed to at least eight countries. This utilities mutual fund has
a three year annualized return of 9.50%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.68% compared to a category average
of 1.43%.
ProFunds Utilities UltraSector
(UTPIX) seeks to provide 150% of the daily return of the Dow Jones
U.S. Utilities Index by investing in equity securities and
derivatives with identical daily returns. The balance of the fund's
assets is utilized to purchase money market securities. The
utilities mutual fund has a three year annualized return of
15.92%.
Hratch Najarian is the fund manager and he has managed this
utilities mutual fund since 2011.
Rydex Utilities
(RYAUX) invests the majority of its assets in utilities companies
whose securities are traded in the US. The fund focuses on
purchasing equity securities and may also invest in derivatives.
The utilities mutual fund has a three year annualized return of
11.22%.
As of September 2012, this utilities mutual fund held 67 issues,
with 3.95% of its total assets invested in Duke Energy
Corporation.
American Century Utilities
(BULIX) seeks current income and capital appreciation. The fund
invests the majority of its assets in securities listed on at least
one index made up entirely of electricity, natural gas, cable
television, water or sanitation services companies. The utilities
mutual fund has a three year annualized return of 13.05%.
The utilities mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.68% compared to a category average
of 1.42%.
Franklin Utilities A
(FKUTX) concentrates on purchasing equity in public utilities
companies and focuses on acquiring common stocks. More than 25% of
its assets are invested in companies that provide electricity, gas,
water and communication services. The utilities mutual fund has a
three year annualized return of 14.03%.
John Kohli is the fund manager and he has managed this utilities
mutual fund since 1998.
To view the Zacks Rank and past performance of all utilities
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
(AWTAX): ETF Research Reports
(BULIX): ETF Research Reports
(FKUTX): ETF Research Reports
(RYAUX): ETF Research Reports
(UTPIX): ETF Research Reports
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