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.
BlackRock Energy & Resources Investor A
(SSGRX) seeks capital appreciation over the long run. It invests
a lion's share of its assets in small cap companies related to
sectors including energy, natural resources and utilities. The
fund has no limit on number of companies it can invest in, but it
will invest in a minimum of three countries. This energy mutual
fund has a one year return of 31.43%. < P> This
non-diversified fund has an expense ratio of 1.34% as compared to
category average of 1.55%.
Fidelity Select Natural Resources Portfolio
(FNARX) invests a large share of its assets in companies whose
principal operations are related to the natural resources
industry. The fund considers a company's financial status and
industry rank, and also looks into market and economic condition
for investment decisions. This energy mutual fund has a one year
return of 26.71%.
John Dowd is the fund manager and has managed this fund since
Frost Natural Resources A
(FNATX) seeks capital appreciation on a long-term basis. It
invests majority of its assets in natural resources companies. It
invests in both U.S. and non U.S. companies. It may also invest
in financial instruments including American Depositary Receipts.
This energy mutual fund has a one year return of 21.41%.
As of February 2014, this fund held 42 issues with 5.87% of
its assets invested in Schlumberger NV.
Fidelity Select Energy Portfolio
(FSENX) invests largely in companies related to energy sector.
Investments are made in conventional resources such as oil, gas
and electricity, among others, and also newer resources like
nuclear, geothermal, oil shale, and solar power. It generally
invests in common stocks. This energy mutual fund has a one year
return of 27.05%.
This non-diversified fund has an expense ratio of 0.81% as
compared to category average of 1.55%.
seeks capital growth over long run. It invests major portion of
its assets in companies whose primary operations are related to
the energy sector including exploration, production, and
transmission of energy or energy fuels, and in other services
like research and energy conservation. This energy mutual fund
has a one year return of 24.56%.
Karl E. Bandtel is the fund manager and has managed this fund
To view the Zacks Rank and past performance of all energy
mutual funds, investors click here to see the complete list of
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
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