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3 Utility Mutual Funds to Buy for Steady Returns

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Investors looking for stable current income would do well to consider utility funds. They are used as defensive instruments, which protect investments during a market downturn. This is because the demand for essential services such as those provided by utilities remains unchanged even during difficult times. Many funds in this category have increased their exposure to emerging markets and unregulated companies in recent years. Though this strategy has increased the risk involved, it also generates higher returns.

Below, we share with you three top-ranked utility mutual funds, namely Cohen & Steers Global Infrastructure Fund, Inc. (CSUAX - Free Report) , Franklin Utilities Fund Class A1 (FKUTX - Free Report) and Fidelity Telecom and Utilities Fund (FIUIX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Cohen & Steers Global Infrastructure Fund, Inc. seeks total return. CSUAX invests the majority of its total assets in common stocks and other equity securities issued by infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, marine ports, telecommunications companies and other infrastructure companies.

Cohen & Steers Global Infrastructure Fund, Inc. has three-year annualized returns of 6.8%. As of March 2022, CSUAX held 59 issues, with 5.6% of its assets invested in Nextera Energy Inc.

Franklin Utilities Fund Class A1 seeks capital growth along with current income by investing most of its net assets in public utility companies that provide electricity, natural gas, water, and communications services. FKUTX invests primarily in equity securities.

Franklin Utilities Fund Class A1 has three-year annualized returns of 9.8%. FKUTX has an expense ratio of 0.73% compared with the category average of 0.94%.

Fidelity Telecom and Utilities Fund invests most of its net assets in common stocks of telecommunications services companies and utility companies. FIUIX uses a fundamental approach like the issuer’s financial condition, industry position, as well as market and economic conditions to select investments.

Fidelity Telecom and Utilities Fund has returned 7.8% in the past three years. Douglas Simmons has been the fund manager of FIUIX since September 2005.

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

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