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4 Best-Rated Utility Mutual Funds for Stable Returns

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Investors with a conservative mindset 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. In recent years, many funds in this category have increased their exposure to emerging markets and unregulated companies. Though this strategy has increased the risk involved, it has also generated higher returns.

Below we will share with you 4 top-rated utility mutual funds . Each has earned a Zacks Mutual Fund Rank #1 (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 utilities mutual funds, investors can click here to see the complete list of funds .

AllianzGI Global Water A (AWTAX - Free Report) seeks long-term capital growth. AWTAX invests a major portion of its assets in common stocks of companies that are represented in the S&P Global Water Index, the NASDAQ OMX US Water or Global Water Indices or the S-Network Global Water Index, or are involved in water-related activities. AllianzGI Global Water A is a non-diversified fund and has a three-year annualized return of 3.6%.

Andreas Fruschki is the fund manager since 2008.

Kinetics Alternative Income Advisor C (KWICX - Free Report) invests a large portion of its assets in the Alternative Income Portfolio, a series of Kinetics Portfolios Trust that holds a portfolio of primarily fixed income securities. KWICX seeks to provide current income. Kinetics Alternative Income Advisor C is a non-diversified fund and has a three-year annualized return of 1.3%.

As of September 2015, KWICX held 327 issues, with 11.58% of its total assets invested in iShares 1-3 Year Credit Bond.

American Century Utilities Investor (BULIX - Free Report) seeks current income and capital appreciation. BULIX invests a major portion of its assets in equities related to the utility industry. BULIX’s portfolio is based on qualitative and quantitative management techniques. In the quantitative process, stocks are ranked on their growth and valuation features. American Century Utilities Investor is a non-diversified fund and has a three-year annualized return of 9.9%.

BULIX has an expense ratio of 0.67% as compared to the category average of 1.25%.

Putnam Global Telecommunication B (PGBBX - Free Report) invests a large portion of its assets in both mid and large capitalization companies across the world. PGBBX generally invests in securities of companies that are part of the telecommunication industry. Putnam Global Telecommunication B is a non-diversified fund and has a three-year annualized return of 6.5%.

Vivek Gandhi is the fund manager since 2008.

To view the Zacks Rank and past performance of all utilities 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. Pick the best mutual funds with the Zacks Rank.



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