Zacks #1 Ranked Precious Metals Funds - Best of Funds

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Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.

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.

Franklin Gold and Precious Metals Advisor (FGADX) seeks capital growth over the long run. It invests a lion's share of its assets in companies related to gold and other precious metals. It invests in companies through out the globe irrespective of their market capitalization. This non-diversified precious metals fund has a five year annualized return of -7.54%.

The fund has an expense ratio of 0.76% as compared to category average of 1.41%.

Gabelli Gold A (GLDAX) invests major portion of its assets in companies related to gold operation and gold bullion. It invests in growth stocks which are undervalued. It invests a large portion of its assets in foreign companies including those from developed and emerging economies. The precious metals fund has a five year annualized return of -7.93%.

Caesar M.P. Bryan is the fund manager and has managed this fund since 1994.

US Global Investors World Precious Minerals (UNWPX) seeks long term capital growth and protection from monetary instability and inflation. Majority of its assets are invested in companies that are primarily involved in exploring, mining and processing of precious minerals. They may include gold, silver, platinum group, palladium and diamonds. It may also invest in warrants. This non-diversified precious metals fund has a five year annualized return of -10.44%.

As of December 2013, this fund held 220 issues with 6.57% of its assets invested in Virginia Mines, Inc.

Franklin Gold and Precious Metals A (FKRCX) invests largely in companies that are related to gold and other precious metals industry. It invests most of its assets in foreign companies of any market capitalization. It may also invest in ADRs. This non-diversified precious metals fund has a five year annualized return of -7.77%.

The fund has an expense ratio of 1.01% as compared to category average of 1.41%.

US Global Investors Gold and Precious Metals (USERX) seeks capital appreciation over long run and protection from monetary instability and inflation. It invests a large share of its assets in equity and related securities of those companies whose primary operations are related to precious metals. This non-diversified precious metals fund has a five year annualized return of -10.42%.

Frank E. Holmes is the fund manager and has managed this fund since 1999.

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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