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Top 3 Energy Mutual Funds With Strong Growth Potential

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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 mutualfunds, viz., Fidelity Select Energy Portfolio (FSENX - Free Report) , Invesco SteelPath MLP Select 40 (MLPFX - Free Report) and Fidelity Natural Resources Fund (FNARX - 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 primarily invests in securities of companies involved in the energy sector, spanning traditional areas, such as oil, gas, electricity, and coal, as well as emerging sources such as nuclear, geothermal, oil shale, and solar. FSENX advisors rely on fundamental analysis to guide investment selection.

Fidelity Select Energy Portfolio has three-year annualized returns of 7.4%. As of May 2025, FSENX held 35 issues, with 24.5% of its assets invested in Exxon Mobil.

Invesco SteelPath MLP Select 40 focuses mainly on master limited partnerships (MLPs) and related securities. Its investments center on companies involved in transporting, storing, processing, refining, marketing, exploring, producing, and mining activities tied to minerals and natural resources, aiming to capture growth across the energy value chain.

Invesco SteelPath MLP Select 40 has three-year annualized returns of 20.4%. Stuart Cartner has been one of the fund managers of MLPFX since 2010.

Fidelity Natural Resources Fund primarily invests in securities of companies focused on natural resources and precious metals. FNARX advisors apply fundamental analysis, evaluating factors, such as an issuer’s financial health and industry standing, to identify suitable investments and build the portfolio.

Fidelity Natural Resources Fund has three-year annualized returns of 13.7%. FNARX has an expense ratio of 0.69%.

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

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