Top Utilities Equity Funds

Today we are featuring top-performing “Utilities” Equity mutual funds, which primarily invest in equity securities of utilities, including telephone or cable-television firms.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds.

3 Great Picks

Van Kampen Utility A (VKUAX) seeks to provide its shareholders with capital appreciation and current income. It may focus on securities that it believes offer capital appreciation and current income at a reasonable risk.

The fund may invest in income securities which include preferred stock and debt securities, including convertible securities, of various maturities which are considered "investment-grade" quality at the time of investment. At the end of March, its portfolio turnover was 120%.

The fund’s top holdings include Exelon Corp. (EXC - Snapshot Report), FPL Group (FPL - Snapshot Report) and Southern Co. (SO - Snapshot Report).

Flex-funds Total Return Utilities (FLRUX) was incepted in June 1995. The investment seeks total returns.

The fund generally invests at least 80% of net assets in securities of domestic or foreign utility companies that provide electricity, natural gas, water, telecommunications or sanitary services to the public. It may also invest in debt securities of public utility firms.

Lowell Glaser Miller has been lead manager at the fund since its inception. The fund distributes dividends monthly and capital gains annually.

Putnam Global Utilities A (PUGIX) seeks capital growth and current income. The fund invests mainly in midsized and large firms but can invest in companies of any size.

The fund uses fundamental research and disciplined quantitative analysis with macroeconomic views to choose a combination of stocks and bonds of companies in the utilities industries that have favorable investment potential.

Shareholders have to make a minimum initial investment of $500 to enter this Zacks#1 Rank (“Strong Buy”) fund. It has an expense ratio of 0.59%.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

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.