As the global appetite for energy continues to increase rapidly, governments and corporations alike are devoting greater resources for the discovery of new energy sources as well as the development of more efficient technology in this domain. In fact, newer economic powerhouses such as China are discovering that the going is even tougher for them. Prices of these invaluable resources continue to rise at a steady rate and the energy sector is clearly a lucrative investment option. Mutual funds are a superior option for forays into the industry as they reduce risks involved by holding widely diversified portfolios.

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.

Aberdeen Natural Resources A ( GGNAX - MF report ) seeks capital growth over the long term. The fund invests the majority of its assets in the natural resources industry. It invests in companies of all sizes, ranging from well-known firms to smaller companies with significant growth potential. The energy mutual fund has a three year annualized return of 3.34%.

The energy mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.45% compared to a category average of 1.45%.

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 -20.25%.

The fund manager is Jens Ni Peers and he has managed this energy mutual fund since 2007.

JHancock2 Natural Resources 1 ( JINRX - MF report ) seeks total return over the long term. The fund invests the majority of its assets in equity and related securities of companies across the world whose primary operations involve natural resources. The energy mutual fund has a three year annualized return of 0.27%.

The energy mutual fund has an expense ratio of 1.12% compared to a category average of 1.45%.

BlackRock Energy & Resources ( SSGRX - MF report ) invests a large share of its assets in energy and natural resources firms worldwide. The fund also invests in companies in related sectors as well as in utilities. It focuses on investing in smaller firms. The energy mutual fund has a three year annualized return of 1.59%.

As of September 2012, this energy mutual fund held 153 issues, with 6.02% of its total assets invested in Plains Exploration & Production Company.

Ivy Energy A ( IEYAX - MF report ) seeks capital appreciation. The fund invests the majority of its assets in securities issued by energy companies. Companies engaged in exploration, discovery, production and distribution of energy constitute the fund’s major investments. The energy mutual fund has a three year annualized return of 5.45%.

The fund manager is David P. Ginther and he has managed this energy mutual fund since 2006.

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.