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3 Best Energy Mutual Funds to Add to Your Portfolio

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Energy was one of the key contributing sectors that led the U.S. industrial production to hit a four-month high. In fact, the energy sector ended the last trading day of the previous week in the green, becoming the best-performing sector of the S&P 500. Additionally, a stable domestic economy is expected to boost overall crude demand in the coming days. So, mutual funds that have significant exposure to the energy sector could be solid investments. Mutual funds are better options while foraying into an industry as these reduce risks by holding a diversified portfolio.

Below we share with you three top-ranked energy mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of energy funds.

Fidelity Select Energy (FSENX - Free Report) invests a large chunk of its assets in securities of companies that are engaged mainly in the energy field. FSENX seeks growth of capital and invests mainly in common stocks. The fund focuses on acquiring securities of both U.S. and non-U.S. companies. Fidelity Select Energy has returned 21.86% in the last bull market.

John Dowd is the fund manager of FSENX since 2006.

BlackRock Natural Resources Investor A (MDGRX - Free Report) seeks growth of capital for the long run. MDGRX focuses mainly on companies that are engaged in the natural resources industry, like energy, oil and mining. BlackRock Natural Resources Investor A has returned 21.17% in the last bull market.

MDGRX has an expense ratio of 1.13% as compared to the category average of 1.38%.

Prudential Jennison Natural Resources A (PGNAX - Free Report) seeks capital appreciation for the long run. PGNAX invests a major part of its assets in equity securities natural resources companies. Natural resources’ companies are those that deal in mining, exploration, processing and developing of products and services with respect to natural resources. Prudential Jennison Natural Resources A has returned 17.36% in the last bull market.

As of Feb 28, 2018, PGNAX held 104 issues, with 4.26% of its assets invested in Halliburton Co.

To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of energy funds.

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