Back to top

Mutual Fund Commentary

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.

Putnam Global Natural Resources A (EBERX - MF report) seeks capital growth. The fund focusses on purchasing common stocks of mid-cap or large firms. It may purchase both value or growth stocks of companies whose principal operations are related to the energy sector. The energy mutual fund has a three year annualized return of 2.76%.

The fund manager is Christopher Eitzmann and he has managed this energy mutual fund since 2012.

Vanguard Energy Investor (VGENX - MF report) utilizes the majority of its assets to purchase common stocks of companies whose primary activities are energy related, including those engaged in energy conservation. The energy mutual fund has a three year annualized return of 3.75%.

The energy mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.31% compared to a category average of 1.52%.

Ivy Global Natural Resources A (IGNAX - MF report) seeks capital appreciation. It invests heavily in equity securities of companies, whose primary operations are related to natural resources, including suppliers and service providers. It may invest in both foreign and domestic firms whose primary operations are conducted abroad. This energy mutual fund has a three year annualized return of -2.44%.

As of March 2013, this energy mutual fund held 89 issues, with 4.37% of its total assets invested in Cameron International Corporation.

ING Global Natural Resources A (LEXMX - MF report) invests heavily in equity securities of domestic or foreign companies related to the natural resources industry. A maximum of 50% of its assets may be invested in any single industry. This energy mutual fund has a three year annualized return of 0.72%.

The fund manager is John Bailey and he has managed this energy mutual fund since 2011.

JHancock2 Natural Resources 1 (JINRX - MF report) seeks total return over the long term. The fund invests a large share of its assets in equity and related securities of companies across the world whose primary operations involve natural resources. The energy mutual fund has a three year annualized return of -2.37%. < P> The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.41% compared to a category average of 1.52%.

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.

Please login to Zacks.com or register to post a comment.