Back to top

Mutual Fund Commentary

Mutual funds investing in precious metals can be a safe haven of refuge when the economy is facing rough weather and markets are heading south. During such times, this category of mutual funds provides consistently higher returns and can outperform stocks. Additionally, a small amount of precious metals in a portfolio can provide sufficient diversification as well as protection against inflation. With the advantages of professional management and a well diversified portfolio, precious metals mutual funds are the brightest choice for investing in this sector.

Below we will share with you 5 top rated precious metals 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 precious metals funds, then click here.

American Century Global Gold (BGEIX - MF report) invests at least 80% of its assets in companies dealing in gold. This includes firms whose primary operations include mining, processing and exploration activities. The precious metals mutual fund returned 43.18% in the last one year period and has a five year annualized return of 19.14%.

The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.70% compared to a category average of 1.49%.

OCM Gold (OCMGX) seeks capital appreciation. The fund invests in domestic and foreign companies in the gold mining industry. It focuses on purchasing common stocks of gold producers. It may also invest in companies engaged in the production of other precious metals. The precious metals fund has a three year annualized return of 15.86%.

Greg Orrell is the fund manager and has managed this precious metals mutual fund since 1988.

Fidelity Select Gold (FSAGX - MF report) invests the majority of its assets in companies whose principal operations are related to gold, and in gold bullion and coins. Up to 25% of the fund’s assets may be invested in gold and other precious metals through a wholly-owned subsidiary. It may also consider purchasing foreign securities. It is non-diversified and a no load fund.

This precious metals mutual fund returned 35.03% in the last one year period.

Franklin Gold & Precious Metals A (FKRCX - MF report) seeks capital appreciation by investing in gold and precious metals or companies involved in mining or processing of these metals worldwide. The precious metals mutual fund returned 46.06% in the last one year period and has a ten year annualized return of 21.18%.

As of June 2010, this precious metals mutual fund held 81 issues, with 6.72% of its total assets invested in Randgold Resources, Ltd. ADR.

Van Eck International Investors Gold A (INIVX - MF report) invests the majority of its assets are invested in companies whose major operations primary operations consist of activities related to gold. It also invests in financial instruments which are backed by gold and in gold coins and bullion. The precious metals mutual fund has a ten year annualized return of 13.34%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.43% compared to a category average of 1.49%.

To view the Zacks Rank and past performance of all precious metals mutual funds, then click here.

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 at http://www.zacks.com/funds/mutualfund/

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