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3 Utilities Mutual Funds to Buy for Stable Returns
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Investors looking for stable current income would do well to consider utilities funds. They are used as defensive instruments, which protect investments during a market downturn. This is because the demand for essential services such as those provided by utilities remains unchanged even during difficult times.
In recent years, many funds in this category have increased their exposure to emerging markets and unregulated companies. Though this strategy has increased the risk involved, it has also generated higher returns.
Franklin Utilities Class A1 (FKUTX - Free Report) fund aims for capital growth and current income. It invests the majority of its assets in the equity securities of public utilities companies. Such companies include the ones that provide electricity, natural gas, water, and communications services to the public as well as companies that provide services to public utilities companies. FKUTX has returned nearly 11.5% in the past three years.
FKUTX has an expense ratio of 0.73% compared to the category average of 0.98%.
Fidelity Advisor Utilities Fund Class A (FUGAX - Free Report) aims for capital appreciation. FUGAX invests the lion’s share of assets in common stocks of companies principally engaged in the utilities industry as well as those companies that derive a majority of their revenues from their utility operations. The fund invests in both U.S. and non-U.S. companies.It has three-year annualized returns of 8.8%.
Douglas Simmons is the fund manager of FUGAX since 2006.
Cohen & Steers Global Infrastructure Fund, Inc. Class A (CSUAX - Free Report) aims for total return. It invests the lion’s share of its total assets in domestic as well as foreign common stocks, and other equity securities that are issued by infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, marine ports, telecommunications companies and other infrastructure companies. CSUAX has three-year annualized returns of 8.8%.
As of the end of March 2021, CSUAX held 71 issues with 5.99% of its assets invested in NextEra Energy Inc.
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3 Utilities Mutual Funds to Buy for Stable Returns
Investors looking for stable current income would do well to consider utilities funds. They are used as defensive instruments, which protect investments during a market downturn. This is because the demand for essential services such as those provided by utilities remains unchanged even during difficult times.
In recent years, many funds in this category have increased their exposure to emerging markets and unregulated companies. Though this strategy has increased the risk involved, it has also generated higher returns.
Below we share with you three top-ranked utilities mutual funds. Each has earned 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 funds.
Franklin Utilities Class A1 (FKUTX - Free Report) fund aims for capital growth and current income. It invests the majority of its assets in the equity securities of public utilities companies. Such companies include the ones that provide electricity, natural gas, water, and communications services to the public as well as companies that provide services to public utilities companies. FKUTX has returned nearly 11.5% in the past three years.
FKUTX has an expense ratio of 0.73% compared to the category average of 0.98%.
Fidelity Advisor Utilities Fund Class A (FUGAX - Free Report) aims for capital appreciation. FUGAX invests the lion’s share of assets in common stocks of companies principally engaged in the utilities industry as well as those companies that derive a majority of their revenues from their utility operations. The fund invests in both U.S. and non-U.S. companies.It has three-year annualized returns of 8.8%.
Douglas Simmons is the fund manager of FUGAX since 2006.
Cohen & Steers Global Infrastructure Fund, Inc. Class A (CSUAX - Free Report) aims for total return. It invests the lion’s share of its total assets in domestic as well as foreign common stocks, and other equity securities that are issued by infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, marine ports, telecommunications companies and other infrastructure companies. CSUAX has three-year annualized returns of 8.8%.
As of the end of March 2021, CSUAX held 71 issues with 5.99% of its assets invested in NextEra Energy Inc.
To view the Zacks Rank and past performance of all utility mutual funds, investors can click here to see the complete list of funds.
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