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Grab These 3 Top-Ranked Energy Mutual Funds for Amazing Returns

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The war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the Russia-Ukraine war prompted several governments, including the United States, 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 expected to help in the near term.

Below, we share with you three top-ranked energy mutual funds, viz., BNY Mellon Natural Resources Fund (DNLAX - Free Report) , Invesco SteelPath MLP Select 40 (MLPFX - Free Report) and Franklin Natural Resources (FRNRX - 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.

BNY Mellon Natural Resources Fund invests most of its assets in securities of domestic and foreign companies, including those in emerging markets, with major exposure in natural resources and natural-resources-related sectors, irrespective of market capitalization. DNLAX advisors choose to invest in growth and value stocks.

BNY Mellon Natural Resources Fund has five-year annualized returns of 24.7%. As of December 2024, DNLAX held 37 issues, with 4.9% of its assets invested in Premian Resources.

Invesco SteelPath MLP Select 40 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 22.5%. Stuart Cartner has been one of the fund managers of MLPFX since April 2010.

Franklin Natural Resources invests most of its net assets in equity and debt securities of smaller-capitalization companies in the natural resources sector. FRNRX advisors may also invest a small portion of its net assets in equity or debt securities of any type of issue.

Fidelity Natural Resources has three-year annualized returns of 4.6%. FRNRX has an expense ratio of 0.99%.

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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