Top 5 Energy Mutual Funds - Best of Funds
Benzinga 15 years ago
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 theZacks Rank and past performance of all energy funds, then click here.
Fidelity Select Energy (FSENX) seeks capital growth. It invests the majority of its assets in equity securities of companies whose principal operations are related to the energy sector. The fund invests in both conventional energy companies and those focusing on newer sources. The energy mutual fund returned 8.27% over the last one year period.
As of October 2010, this energy mutual fund held 64 issues, with 18.85% of its total assets invested in ExxonMobil Corporation.
Rydex Energy Services (RYVIX) invests at least 80% of its assets in equity securities of domestic energy services companies. The fund may also utilize derivatives to fulfill its investment objectives. The energy mutual fund returned 8.93% over the last one year period and has a five year annualized return of 3.84%.
The fund manager is Michael P. Byrum and he has managed this energy mutual fund since 1998.
Ivy Global Natural Resources A (IGNAX) seeks long-term capital appreciation. The fund invests heavily in equity securities of companies, whose primary operations are related to natural resources, including suppliers and service providers. The energy mutual fund has a ten year annualized return of 14.96%.
The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.45% compared to a category average of 1.56%.
Invesco Energy (FSTEX) invests at least 80% of its assets are used to purchase securities of energy companies. This includes companies which produce or distribute conventional energy, as well as energy conservation and alternative energy companies. This energy mutual fund has a five year annualized return of 5.58%.
The fund manager is Andrew Lees and he has managed this energy mutual fund since 2008.
Aberdeen Natural Resources A (GGNAX) seeks invests the majority of its assets in domestic and foreign companies from the natural resources industry. It invests in companies of all sizes, ranging from well-known firms to smaller companies with significant growth potential. The energy mutual fund returned 10.52% over the last one year period
The energy mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.56% compared to a category average of 1.56%.
To view the Zacks Rank and past performance of all energy mutual funds, then click here.
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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/mutualfund/
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