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Buy These 3 Top-Ranked Energy Mutual Funds for Near-Term Gains

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The escalating conflict involving Iran has added fresh uncertainty to global energy markets, particularly due to risks around the Strait of Hormuz, a vital route for global oil shipments. Any disruption in this region has immediate implications for supply and pricing.

Crude prices have risen sharply amid fears of supply constraints and potential damage to energy infrastructure. Ongoing tensions have also heightened volatility, as markets react quickly to geopolitical developments.

Unlike broader supply chain disruptions seen in past conflicts, the current situation is more concentrated in the energy sector. With supply concerns likely to persist, energy stocks are expected to benefit. As a result, investing in funds with exposure to energy equities could offer potential upside in the near term.

Below, we share with you three top-ranked energy mutual funds, viz.,T. Rowe Price New Era (PRNEX - 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.

T. Rowe Price New Era generally allocates most assets to natural resource stocks, which can gain from rising inflation, while also holding select growth companies without direct resource ownership.

T. Rowe Price New Era has three-year annualized returns of 15%. As of December 2025, PRNEX held 112 issues, with 4.4% of its assets invested in Shell Plc.

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 24.7%. 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 like 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 19.9%. 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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