Oil mutual funds present an attractive opportunity in the current scenario. With global energy demand steadily rebounding, oil prices remain well-supported despite market volatility. Geopolitical tensions, supply constraints from OPEC+ cuts and underinvestment in new oil projects have created a favorable supply-demand imbalance. At the same time, inflationary pressures make commodities, including oil, a strong hedge against eroding purchasing power.
In an inflationary environment, oil serves as a good hedge. While the long-term trend is toward clean energy, the transition will take decades, ensuring oil remains vital for the global economy. Oil mutual funds offer a way to invest in this critical sector and benefit from strong company earnings, dividends and share buybacks without the risk of picking individual stocks. For investors seeking growth, diversification and inflation protection, oil mutual funds offer a timely and strategic investment choice in today’s uncertain economic environment.
Below, we share with you three top-ranked energy mutual funds, viz., US Global Investors Global Res (PSPFX), Victory Global Energy Transition Fund (RSNRX) and Invesco SteelPath MLP Select 40 (MLPFX). Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.
US Global Investors Global Res fund seeks long-term growth of capital plus protection against inflation and monetary instability. PSPFX invests at least 80% of its assets in the equity securities of companies within the natural resource industry.
US Global Investors Global Res fund has three-year annualized returns of 20.1%. As of the end of December 2025, PSPFX had 111 issues and invested 17.6% of its net assets in Abaxx Technologies Inc.
Victory Global Energy Transition Fund seeks long-term capital appreciation. RSNRX invests at least 80% of its net assets in securities of companies principally engaged in natural resources industries.
Victory Global Energy Transition Fund has three-year annualized returns of 27.4%. Mackenzie B. Davis has been the fund manager of RSNRX since January 2005.
Invesco SteelPath MLP Select 40 fund focuses mainly on master limited partnerships and related securities. Its investments center on companies involved in transporting, storing, processing, refining, marketing, exploring, producing and mining activities tied to minerals and natural resources, aiming to capture growth across the energy value chain.
Invesco SteelPath MLP Select 40 has three-year annualized returns of 26.4%. MLPFX has an expense ratio of 1.12%.
To view the Zacks Rank and the past performance of all energy mutual funds, investors can click here to see the complete list of energy mutual funds.
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This article originally published on Zacks Investment Research (zacks.com).
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