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Mutual Fund Commentary

Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past. Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments 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 the fund to outperform its peers in the future.  To view the Zacks Rank and past performance of all precious metals funds, investors can click here to see the complete list of funds.

U.S. Global Investors Gold and Precious Metals (USERX - MF report) seeks capital appreciation over the long term. The fund invests a large proportion of its assets in companies whose primary operations are related to gold and other precious metals. The precious metals fund has a ten year annualized return of 16.86%.

Frank E. Holmes is the fund manager and has managed this precious metals fund since 1999.

Midas (MIDSX - MF report) invests at least 65% of its assets are invested in companies involved in the mining, processing and distribution of precious metals. Up to 35% of its assets may be invested in companies deriving a share of its revenues from the precious metals sector. The precious metals fund has a ten year annualized return of 7.29%.

As of August 2012, this precious metals mutual fund held 26 issues, with 11.31% of its total assets invested in Goldcorp, Inc.

Gabelli Gold AAA (GOLDX - MF report) seeks capital growth over the long term. The fund invests the majority of its net assets in domestic and foreign companies which engage in gold-related activities. It invests both mature markets and emerging economies. The precious metals fund has a ten year annualized return of 15.14%.

The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.46% compared to a category average of 1.41%.

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. The fund focuses on acquiring common stocks. A maximum of 25% of the fund’s assets may be invested in gold and other precious metals through a wholly-owned subsidiary. The precious metals fund has a ten year annualized return of 12.93%.

Joe Wickwire is the fund manager and has managed this precious metals fund since 2007.

American Century Global Gold (BGEIX - MF report) seeks current income and capital growth. The majority of the fund’s assets are invested in companies dealing in gold. This includes firms whose primary operations include mining, processing and exploration activities. The precious metals mutual fund has a ten year annualized return of 12.88%.

The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.69% compared to a category average of 1.41%.

To view the Zacks Rank and past performance of all precious metals 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.

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