5 Strong Buy Energy Mutual Funds to Outperform
With every passing year, the world’s appetite for energy continues to increase steadily. Governments and corporations alike are therefore constantly on the lookout for new energy sources or more efficient technology in this domain. For fast growing economies such as China and India, the situation is even more acute. Thus, prices of these invaluable resources are surging and investors could benefit from the situation by investing in the energy industry. Energy 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.
Fidelity Select Energy Service Portfolio (FSESX) invests a majority of its assets in companies involved in operations related to the conventional areas of oil, gas, electricity and alternative sources of energy such as nuclear, geothermal, and solar power. It focuses on acquiring common stocks of companies throughout the world depending on factors such as financial strength and market condition. This non-diversified energy mutual fund has a one year return of 0.5%. < P> Ben Shuleva is the fund manager and has managed this fund since 2013.
Fidelity Select Natural Gas Portfolio (FSNGX) seeks long-term capital growth. The fund invests largely in companies whose primary operations are related to production, distribution and exploration of natural gas. It invests in common stocks of both U.S. and non U.S. companies. This non-diversified energy mutual fund has a one year return of 8.9%.
This fund has an expense ratio of 0.84% as compared to the category average of 1.47%.
Guinness Atkinson Global Energy (GAGEX) invests a major portion of its assets in both domestic and foreign companies of all market capitalization. These companies are involved in the production, exploration or distribution of energy, and are also involved in research and development of alternative energy sources. The fund seeks capital growth over the long run. This non-diversified energy mutual fund has a one-year return of 5.2%.
As of June 2014, this fund held 45 issues with 3.61% of its assets invested in Newfield Exploration Co
Integrity Williston Basin/Mid-North America Stock A (ICPAX) seeks long-term capital growth. The fund invests a lion’s share of its assets in US and non-US companies which gain from resource developments in the Williston Basin area and/or Mid-North America area. It may also invest in development stage companies. This energy mutual fund has a one-year return of 11.7%.
This fund has an expense ratio of 1.41% as compared to category average of 1.47%.
Waddell & Reed Energy A (WEGAX) invests a lion’s share of its assets in companies whose primary operations include exploration, discovery, production and distribution of energy and alternative energy sources. It may invest all of its assets in non-US firms. It invests in both value and growth stocks of companies all over the globe including those from emerging countries. This energy mutual fund has a one-year return of 7.3%.
David P. Ginther is the fund manager and has managed this fund since 2006.
To view the Zacks Rank and past performance of all energy 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 in our Mutual Fund Center.
Read the analyst report on FSESX
Read the analyst report on FSNGX
Read the analyst report on GAGEX
Read the analyst report on ICPAX
Read the analyst report on WEGAX
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