Energy mutual funds offer an attractive opportunity to investors with a long term horizon since they represent a stable industry with a bright future. The demand for energy continues to rise steadily and this is particularly true of nations growing at a rapid pace. Along with this trend, the pressure on natural resources which are harnessed to provide energy and related services has also increased considerably. With the advantages of professional management and well diversified portfolios mutual funds are the most viable route to invest in this sector.

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 primarily invests in common stocks of energy and natural resources companies across the world. It focuses on investing in large and mid-cap companies. The energy mutual fund has a three year annualized return of 24.11%.

The fund manager is Steven Curbow and he has managed this energy mutual fund since 2008.

Calvert Global Alternative Energy A ( CGAEX - MF report ) invests a large share of its assets in domestic and foreign companies from the alternative energy sector. The fund focuses on acquiring common stocks of small and mid-cap companies. The energy mutual fund has a three year annualized return of -3.91 %.

The energy mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.85% compared to a category average of 1.63%.

T. Rowe Price New Era ( PRNEX - MF report ) seeks both capital appreciation over the long term. At least two-thirds of the funds assets are invested in natural resource companies which could benefit from rising inflation. It also invests in companies outside the sector with strong earnings potential. The energy mutual fund has a three year annualized return of 23.83%.

As of December 2011, this energy mutual fund held 103 issues, with 4.64% of its total assets invested in Schlumberger NV.

ProFunds Oil Equipment Services & Distribution ( OEPIX - MF report ) invests the majority of its assets in equity securities or derivatives whose daily return corresponds to that of the Dow Jones U.S. Oil Equipment, Services & Distribution index. The energy mutual fund has a three year annualized return of 39.65%.

The fund manager is Hratch Najarian and he has managed this energy mutual fund since 2011.

BlackRock All-Cap Energy & Resources Investor A ( BACAX - MF report ) seeks long-term capital appreciation. The fund invests a large share of its assets in equity securities of domestic and foreign energy and natural resource companies. It invests in around 25 to 30 securities at any point in time. This energy mutual fund is non-diversified and has a three year annualized return of 25.39%.

The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.34% compared to a category average of 1.63%.

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