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3 Energy Mutual Funds for Fantastic Returns

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The recent war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the prevailing war between Russia and Ukraine has prompted several governments, including the Biden administration, to impose sanctions on Russian oil and energy. Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. government imposed a ban on the import of oil and other energy products.

Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is likely to help in the near term.

Below, we share with you three top-ranked energy mutual funds, viz.,Fidelity Select Energy Portfolio (FSENX - Free Report) , T. Rowe Price New Era (PRNEX - Free Report) and Invesco SteelPath MLP Select 40 (MLPFX - Free Report) . Each has 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 energy mutual funds.

Fidelity Select Energy Portfolio fund seeks capital appreciation. FSENX invests its assets in common stocks of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. 

Fidelity Select Energy Portfolio has three-year annualized returns of 11.3%. As of November 2024, FSENX held 39 issues, with 24.3% of its assets invested in Exxon Mobil Corp.

T. Rowe Price New Era fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies that own or develop natural resources and other basic commodities and in the stocks of selected non-resource growth companies. PRNEX advisors also invest about two-thirds of fund's assets in the common stocks of natural resource companies where earnings and tangible assets can benefit from accelerating inflation. 

T. Rowe Price New Era has three-year annualized returns of 4.9%. PRNEX has an expense ratio of 0.77%.

Invesco SteelPath MLP Select 40 fund invests most of its net assets in master limited partnerships (MLPs) and MLP-related securities. It primarily invests in issuers engaged in the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources.

Invesco SteelPath MLP Select 40 has three-year annualized returns of 23.6%. Stuart Cartner has been one of the fund managers of MLPFX since March 2010.

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

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